The Excel Pricedisc function calculates the price, per $100 face value of a discounted security.
The syntax of the function is:
Where the arguments are as follows:
|settlement||-||The settlement date of the security (i.e. the date that the coupon is purchased).|
|maturity||-||The maturity date of the security (i.e. the date that the coupon expires).|
|discount||-||The security's percentage discount rate.|
|redemption||-||The security's redemption value per $100 face value.|
An optional integer argument that specifies the financial day count basis that is used by the security. Possible values are:
The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page
Warning: If you enter text representations of dates into Excel functions, the interpretation of these can differ, depending to the date system and date interpretation settings on your computer. Therefore, the settlement and maturity dates should be entered into the Pricedisc function as either:
|3||=PRICEDISC( B1, B2, 2.5%, 100 )|
The above function returns the value 90.00.
I.e. the price of security with the above terms would be $90.00.
Note that, in the above example:
For further examples of the Excel Pricedisc function, see the Microsoft Office website.
If you get an error from the Pricedisc function, this is likely to be one of the following: