Introduction:-

DISC function in excel is a financial function. It is used to find discount rate of a security. It is a worksheet function and can be entered in the cell in which value is required.

Syntax:-

=DISC(settlement, maturity, pr, redemption, basis)

Arguments:-

• Settlement: It is the date on which security is settled. It comes after issue date when security is rated to the buyer.
• Maturity: It is the date on which security will be matured.
• Per: Price of the security per $100 face value.
• Redemption: Redemption value of security at $100 face value.
• Basis: It is the type of day count basis to be used.

Keynotes:-

• Microsoft Excel stores dates as serial numbers . By default, January 1, 1900 is serial number 1 and corresponding dates have serial number greater than 1.
• Settlement, Maturity and basis are converted to integers.
• If settlement or maturity is not in valid format, #VALUE error is returned.
• If Redemption and Pr are less than or equal to zero, #NUM error is displayed.
• If Basis is less than zero or greater than four, #NUM error is displayed.
• Calculation of DISC is done according to formula:

Examples

• In this example, various arguments are entered in column A and their values are entered in column B and DISC function is used to retrieve the result in column D. Formula used for calculation is: