Skip to content
xlsoffice. All Rights Reserved
  • Home
  • Excel For Beginners
  • Excel Intermediate
  • Advanced Excel For Experts

Lookup and Reference Examples

  • INDEX function: Description, Usage, Syntax, Examples and Explanation
  • How to get address of named range in Excel
  • How to use Excel ROWS Function
  • Count unique text values with criteria
  • CHOOSE function: Description, Usage, Syntax, Examples and Explanation

Data Analysis Examples

  • Example of COUNTIFS with variable table column in Excel
  • Excel Bar Chart
  • Reverse List in Excel
  • Conditional Formatting Color Scales Examples in Excel
  • Conflicting Multiple Conditional Formatting Rules in Excel

Data Validation Examples

  • Data validation must not exist in list
  • Excel Data validation allow uppercase only
  • Excel Data validation number multiple 100
  • Excel Data validation must contain specific text
  • Prevent invalid data entering in specific cells

DISC function: Description, Usage, Syntax, Examples and Explanation

by

What is DISC function in Excel?

DISC function is one of the Financial functions in Microsoft Excel that returns the discount rate for a security.

Syntax of DISC function

DISC(settlement, maturity, pr, redemption, [basis])

The DISC function syntax has the following arguments:

  • Settlement: 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: The security’s maturity date. The maturity date is the date when the security expires.
  • Pr: The security’s price per $100 face value.
  • Redemption: The security’s redemption value per $100 face value.
  • Basis (Optional): The type of day count basis to use.

Note: Problems can occur if dates are entered as text. Therefore, all dates should be entered by using the DATE function, or formatted as date under format cell to avoid errors.

Basis Day count basis
0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

DISC formula explanation

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2018 is serial number 43101 because it is 43,101 days after January 1, 1900.
  • The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose a 30-year bond is issued on January 1, 2018, and is purchased by a buyer six months later. The issue date would be January 1, 2018, the settlement date would be July 1, 2018, and the maturity date would be January 1, 2048, 30 years after the January 1, 2018, issue date.
  • Settlement, maturity, and basis are truncated to integers.
  • If settlement or maturity is not a valid serial date number, DISC returns the #VALUE! error value.
  • If pr ≤ 0 or if redemption ≤ 0, DISC returns the #NUM! error value.
  • If basis < 0 or if basis > 4, DISC returns the #NUM! error value.
  • If settlement ≥ maturity, DISC returns the #NUM! error value.
  • DISC is calculated as follows:Equationwhere:
    • B = number of days in a year, depending on the year basis.
    • DSM = number of days between settlement and maturity.

Example of DISC function

Steps to follow:

1. Open a new Excel worksheet.

2. Copy data in the following table below and paste it in cell A1

Note: For formulas to show results, select them, press F2 key on your keyboard and then press Enter.

You can adjust the column widths to see all the data, if need be.

Data Description
07/01/2018 Settlement date
01/01/2048 Maturity date
97.975 Price
100 Redemption value
1 Actual/actual basis (see above)
Formula Description Result
=DISC(A2,A3,A4,A5,A6) The bond discount rate, for a bond with the above terms 0.001038

Post navigation

Previous Post:

PPMT function: Description, Usage, Syntax, Examples and Explanation

Next Post:

ODDLYIELD function: Description, Usage, Syntax, Examples and Explanation

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Learn Basic Excel

Ribbon
Workbook
Worksheets
Format Cells
Find & Select
Sort & Filter
Templates
Print
Share
Protect
Keyboard Shortcuts

Categories

  • Charts
  • Data Analysis
  • Data Validation
  • Excel Functions
    • Cube Functions
    • Database Functions
    • Date and Time Functions
    • Engineering Functions
    • Financial Functions
    • Information Functions
    • Logical Functions
    • Lookup and Reference Functions
    • Math and Trig Functions
    • Statistical Functions
    • Text Functions
    • Web Functions
  • Excel VBA
  • Excel Video Tutorials
  • Formatting
  • Grouping
  • Others
  • Get first name from name with comma — Manipulating NAMES in Excel
  • CODE function: Description, Usage, Syntax, Examples and Explanation
  • How to create email address with name and domain in Excel
  • How to check if cell contains number in Excel
  • How to check cell contains which things in Excel
  • Get month from date in Excel
  • DATE function: Description, Usage, Syntax, Examples and Explanation
  • Add days to date in Excel
  • Convert text timestamp into time in Excel
  • Convert decimal minutes to Excel time
  • ODDLPRICE function: Description, Usage, Syntax, Examples and Explanation
  • PMT, RATE, NPER, PV and FV Financial Functions in Excel
  • ODDFPRICE function: Description, Usage, Syntax, Examples and Explanation
  • Calculate periods for annuity in Excel
  • RRI function: Description, Usage, Syntax, Examples and Explanation
Acronyms, Abbreviations, Initialism & What They Stand For
© 2021 xlsoffice. All Rights Reserved | Teal Smiles