Description
PriceDisc returns the price of a discounted security per $100 of face value.
Overloads
PriceDisc (settlementDate, maturityDate, discountRate, redemptionValue)
PriceDisc (settlementDate, maturityDate, discountRate, redemptionValue, basis)
Arguments
settlementDate is a
Date or
DateTime specifying when the security was purchased.
maturityDate is a
Date or
DateTime after the settlement date specifying when the security matures.
discountRate is a positive number specifying the security's discount rate.
redemptionValue is a number or currency specifying the security's value at redemption per $100 of face value.
basis is an optional number specifying the day basis system to use. The following types are supported:
0 - American 30/360 (default)
Action
PriceDisc returns the price of a discounted security per $100 of face value. The formula subtracts the discounted amount from the redemption value.
Examples
U.S. Treasury bills are purchased on a discounted basis and are redeemed at face value. Suppose that a bill is purchased on July 15, 1999, it matures on October 1, 1999 and has a discount rate of 6.3%. Using an actual/360 basis for this discounted security, the price is found using the following formula:
PriceDisc(DateValue(1999,7,15), DateValue(1999,10,1), 0.063, 100, 2)
Returns $98.64 (rounded to the nearest cent) as the Treasury bill's price. Since there are 78 days between the settlement and maturity, the discounted amount is 100 x 0.063 x (78/360) = 1.365. This is subtracted from the $100 redemption value to get the answer.
Comments
This function is similar to the Excel function of the same name.