The DISC function calculates the discount rate for a security. It is a Financial function and first introduced in the Excel 2007 version.
DISC(settlement, maturity, pr, redemption, [basis])
settlement – Required. The date on which the security was traded to the buyer.
maturity – Required. The maturity date of the security. The date on which the security expires.
pr – Required. The price of the security on the settlement date.
redemption – Required. The value to be paid by the issuer of the security to the security holder on the maturity date.
[basis] – Optional. The day count basis to be used while calculation. If omitted, Excel uses 0 by default.
|Basis||Day count basis|
|0 or omitted||US (NASD) 30/360|
Suppose, you purchased a bond with the price of $100 on September 30, 2018. The bond will expire on January 01, 2022 with the redemption value of $110. By using the DISC function, we will find out the discount rate of the bond:
|#VALUE!||If the supplied settlement or maturity dates are not valid.|
|#NUM!||If pr ≤ 0 or if redemption ≤ 0.|
|If basis < 0 or if basis > 4.|
|If settlement ≥ maturity.|