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Financial function
DISC
Returns the discount rate for a security.
Rarely usedDifficulty 1500 · AdvancedUsage rank #392 of 520
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!.
Related
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