Documentation/Calc Functions/DISC

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Function name:

DISC

Category:

Financial Analysis

Summary:

Calculates the allowance (discount) of a security as a percentage.

Syntax:

DISC(Settlement; Maturity; Price; Redemption[; Basis])

Returns:

Returns a real number between 0 and 1 (both inclusive) which is the discount rate of a security.

Arguments:

Settlement is a date or a reference to a cell containing that date which is the date at which the interest accrued up until then is to be calculated.

Maturity is a date or a reference to a cell containing that date which is the date on which the security matures (expires).

Price is a positive real number or a reference to the cell containing that number which is the price of the security per 100 currency units of par value.

Redemption is a positive real number or a reference to the cell containing that number which is the redemption value of the security per 100 currency units of par value.

Basis is a positive integer from 0 to 4 or a reference to a cell containing that integer which is chosen from a list of options and indicates how the year is to be calculated. For more information, visit Wikipedia's Day count convention page.

Basis Calculation
0 or missing US method (NASD), 12 months of 30 days each
1 Exact number of days in months, exact number of days in year.
2 Exact number of days in month, year has 360 days.
3 Exact number of days in month, year has 365 days.
4 European method, 12 months of 30 days each.


  • If either Price or Redemption is less than or equal to 0 then the function returns an error value.
  • If either Settlement or Maturity are not valid dates then the function returns an value(#VALUE!) error.
  • If Settlement date is after the Maturity date then the function returns an error value.
  • If Basis is a non-integer value, then the function uses its floor value, i.e. it is truncated to an integer value.
  • After truncation if Basis is ny number except 0,1,2,3,4 or missing(passed as empty argument or not passed at all),then the function will return an error value.

Additional details:

  • The formula for DISC is:
Disc.png

Examples:

Formula Description Returns
=DISC("2001-01-25";"2001-11-15";97;100;3) A security is purchased on 2001-01-25; the maturity date is 2001-11-15. The price (purchase price) is 97, the redemption value is 100. Using daily balance calculation (basis 3) the function calculates how high is the settlement (discount). 0.037244897959184
=DISC("2001-01-25";"2001-11-15";97;100) A security is purchased on 2001-01-25; the maturity date is 2001-11-15. The price (purchase price) is 97, the redemption value is 100. Using daily balance calculation (basis 0 by default) the function calculates how high is the settlement (discount). 0.037241379310345
=DISC("2001-01-25.05";"2001-11-15";97;100;3) The function returns an error value if either Settlement or Maturity are not valid dates. #VALUE!
=DISC("2002-01-25";"2001-11-15";97;100;3) The function returns an error when Settlement date is after the Maturity date. Err:502

Related LibreOffice functions:

YEARFRAC

ODF standard:

Section 6.12.15, part 2

Equivalent Excel functions:

DISC