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Financial function

DISC

Returns the discount rate for a security.

Rarely usedDifficulty 1500 · AdvancedUsage rank #392 of 520
Practice · 2 questions →

When to use it

The discount rate of a security sold below its redemption value with no coupons, such as commercial paper.

The shape of it

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

Worked examples

  • Half-year paper

    =DISC(DATE(2025,1,1),DATE(2025,7,1),97.5,100) 5.00%

    A 2.5 discount over half a year, 30/360.

  • Actual days

    =DISC(DATE(2025,1,1),DATE(2025,7,1),97.5,100,1) 5.04%

    Actual/actual uses 181 days.

  • One year

    =DISC(DATE(2025,1,1),DATE(2026,1,1),95,100) 5.00%

    A full year.

Worth knowing

  • Discount rate is on redemption; INTRATE is the yield on price.
  • PRICEDISC reverses it.
  • Basis matters for short paper.

Where it goes wrong

  • #NUM! when price or redemption is not positive.
  • Text dates return #VALUE!.

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