## Use

The PRICEDISC function calculates the price per $100 face value of a discounted security.

## Syntax

PRICEDISC(settlement, maturity, discount, redemption, [basis])

The PRICEDISC function has the following arguments:

**settlement** – Required. The settlement date of the discounted security. The date comes after the issuance date when the security is traded to a buyer.

**maturity** – Required. The maturity date of the security. It is the date on which the security expires.

**discount** – Required. The discount rate for the security.

**redemption** – Required. The redemption value per $100 face value of the security.

**[basis]** – Optional. It is the optional argument, uses to specify the type of day count basis for calculation purpose. If omitted, Excel uses 0 i.e. US (NASD) 30/360 by default. Further available options are provided in the table below:

Basis | Day count basis |

0 or omitted | US (NASD) 30/360 |

1 | Actual/actual |

2 | Actual/360 |

3 | Actual/365 |

4 | European 30/360 |

## Example

Suppose, a 5-year bond issued on June 30, 2019, at the discount rate of 5%. A buyer purchased the bond six months later on December 31, 2019. On June 30, 2024, the expiry date, the bond redeems at $100 face value. The PRICEDISC function calculates the price of the bond mentioned hereunder:

Result. The discounted security with the above terms has the price of $77.5.

## Function Errors

Error | Occurs |

#VALUE! | If the settlement or maturity date is invalid. |

#NUM! | If the discount rate is equal to or smaller than zero. |

#NUM! | If the redemption value is equal to or smaller than zero. |

#NUM! | If the [basis] argument is either smaller than zero or greater than 4. |

#NUM! | If the settlement date is equal to or after the maturity date. |

## Related Functions

The PRICEDISC function belongs to the Financial function category and has following related functions:

PRICE function calculates the price per $100 face value of a security that pays periodic interest.

PRICEMAT function calculates the price per $100 face value of a security (e.g. a bond) that pays interest at maturity.

TBILLPRICE function calculates the price of a Treasury bill.

DOLLARDE function converts a dollar price, expressed as a fraction, into a dollar price, expressed as a decimal number.