The DISC function calculates the discount rate for a security.

DISC takes 4 required arguments and 1 optional argument:

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

The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose a 30-year bond is issued on January 1, 2014, and is purchased by a buyer six months later. The issue date would be January 1, 2014, the settlement date would be July 1, 2014, and the maturity date would be January 1, 2044, 30 years after the January 1, 2014, issue date.

#1)
Using the DISC function:
#2)
The arguments for the DISC function are:
Argument Required? Description
settlement Required The security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
maturity Required The security's maturity date. The maturity date is the date when the security expires.
pr Required The number of periods over which the asset is being depreciated (the useful life of the asset).
redemption Required The security's redemption value per $100 face value.
basis Optional The type of day count basis to use.
#3)
A few more things:
settlement, maturity, and basis are truncated to integers.
If settlement or maturity is not a valid serial date number, DISC returns the #VALUE! error value.
If pr ≤ 0 or if redemption ≤ 0, DISC returns the #NUM! error value.
If basis < 0 or if basis > 4, DISC returns the #NUM! error value.
If settlementmaturity, DISC returns the #NUM! error value.

Summary

The DISC function calculates the discount rate for a security.
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