Excel DISC Function

If you want to follow along with this tutorial, please download the example spreadsheet.

Description

The DISC function returns the discount rate of a security.

Syntax and arguments

Formula syntax

Arguments

Return Value

The DISC function returns a numeric value. You can change the result to percentage format.

Errors

1. If the arguments settlement and maturity are not valid dates, such as are the non-numeric value, or the dates that are earlier than 1/1/1900, the function will return to an error value #VALUE!.

2. If any one argument is non numeric value, the function returns to error value #VALUE!.

3. If the argument basis is out of range (0-4), the function will return to an error value #NUM!.

4. If the argument settlement date ≥ maturity date, the function will return to an error value #NUM!.

5. If the argument pr, redemption ≤ 0, the function returns error value #NUM!.

Remarks

1. In Excel, dates are stored as serial number. Default, 1/1/1900 is the 1990 date system which means that 1/1/1900 is the first valid day in Excel and stored as number 1 in Excel. So 1/1/2021 is stored as number 44197.

2. Argument settlement, maturity and basis are truncated to integers, and if the arguments including time, the time will be ignored.

Version

Excel 2003 or later

Usage and Examples

Example 1 when argument basis is omitted

In table range B3:C8, it contains all information of a security, and the basis of the security is omitted, please use DISC function to calculate the discount rate as below:

=DISC(C4,C5,C6,C7)

Press Enter key to get the discount.

If the result shown as decimal number, format it to percentage.

This example omits the basis argument, so the DISC function takes it as 0, which uses the US (NADS) 30/360 as day count basis.

Example 2 when argument basis is 2

In table range B3:C8, it contains all information of a security, and the basis of the security is 2, please use DISC function to calculate the discount rate as below:

=DISC(C4,C5,C6,C7,C8)

Press Enter key to get the discount.

If the result shown as decimal number, format it to percentage.

The example here takes basis as 2 which uses the Actual/360 as day count basis.

Relative Functions:

• Excel COUPDAYBS Function
  The COUPDAYBS function returns the number of days between the beginning of the coupon period and its settlement date.

• Excel ACCRINT Function
  The ACCRINT function returns the accrued interest on periodic interest-paying securities.

• Excel ACCRINTM Function
  The ACCRINTM function returns the accrued interest for a security that pays interest at maturity.

• Excel AMORDEGRC Function
  The AMORDEGRC function returns the linear depreciation of an asset for each accounting period by applying a depreciation coefficient based on the lifetime of the assets.