Calculates the allowance (discount) of a security as a percentage.
DISC(Settlement; Maturity; Price; Redemption; Basis)
Settlement is the date of purchase of the security.
Maturity is the date on which the security matures (expires).
Price is the price of the security per 100 currency units of par value.
Redemption is the redemption value of the security per 100 currency units of par value.
Basis (optional) is chosen from a list of options and indicates how the year is to be calculated.
|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|
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) how high is the settlement (discount)?
=DISC("2001-01-25";"2001-11-15";97;100;3) returns about 0.0372 or 3.72 per cent.