The Excel PRICEDISC function returns the price per $100 face value of a discounted security.
Syntax:= PRICEDISC(settlement, maturity, discount, redemption, [basis])
The PRICEDISC function syntax has the following arguments:
- Settlement Required. The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
- Maturity Required. The security’s maturity date. The maturity date is the date when the security expires.
- Discount Required. The security’s discount rate.
- Redemption Required. The security’s redemption value per $100 face value.
- Basis Optional. The type of day count basis to use.
| 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: Let’s look at some Excel PRICEDISC function examples and explore how to use the PRICEDISC function as a worksheet function in Microsoft Excel:
In the following example, the Excel Pricedisc function is used to calculate the price per $100 face value of a discounted security purchased on 15-Jan-2019, with maturity date 15-Apr-2019 and a discounted rate of 6.50%. The redemption value is $100 and the Actual/360 day count basis is used:
Syntax: =PRICEDISC(B1,B2,B3,B4,B5)
Result: 98.375
Note:
- #NUM! error – Occurs if either:
- The settlement date is greater than or equal to maturity date;
- When we provide invalid numbers for the arguments: the rate of discount, redemption or basis. That is, if we have provided a discount rate is less than or equal to zero, a redemption value is less than or equal to less than zero, or a basis that is a number other than 0,1,2,3,4.
- #VALUE! error – Occurs if:
- The given settlement or maturity arguments are invalid Excel dates.
- Any of the given arguments are non-numeric.
- PRICEDISC is calculated as follows:
