The Excel PRICEDISC Function

Related Functions:
PRICE function
YIELDDISC function

Basic Description

The Excel Pricedisc function calculates the price, per $100 face value of a discounted security.

The syntax of the function is :

PRICEDISC( settlement, maturity, discount, redemption, [basis] )

Where the arguments are as follows:

settlement - The settlement date of the security (ie. the date that the coupon is purchased)
maturity - The maturity date of the security (ie. the date that the coupon expires)
discount - The security's percentage discount rate
redemption - The security's redemption value per $100 face value
[basis] - An optional integer argument which specifies the financial day count basis that is used by the security. Possible values are:
Basis Day Count Basis
0 (or omitted) US (NASD) 30/360
1 actual/actual
2 actual/360
3 actual/365
4 European 30/360
The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page

Note that the settlement and maturity arguments should be entered into the function as either:

or

Warning:

- If you attempt to input the date arguments as text, these may be interpreted differently, due to the date system and date interpretation settings on your computer.
- Although you can enter dates directly, as serial numbers, this is not recommended, as date serial numbering varies across different computer systems.


Excel Pricedisc Function Example

In the following example, the Excel Pricedisc function is used to calculate the price per $100 face value of a discounted security purchased on 01-Apr-2011, with maturity date 31-Mar-2015 and a discounted rate of 2.5%. The redemption value is $100 and the US (NASD) 30/360 day count basis is used:

  A B
1 Settlement Date: 01-Apr-2011
2 Maturity Date: 31-Mar-2015
3 =PRICEDISC( B1, B2, 2.5%, 100 )

The function calculates the price per $100 face value to be $90.

Note that, in the above example:


Further examples of the Excel Pricedisc function can be found on the Microsoft Office website.


Pricedisc Function Errors

If you get an error from the Pricedisc function, this is likely to be one of the following:

Common Errors
#NUM! - Occurs if either:
- the settlement date is ≥ maturity date
or
- Invalid numbers are supplied for the discount, redemption or basis arguments

(i.e. if either: discount ≤ 0; redemption ≤ 0; or basis is any number other than 0, 1, 2, 3 or 4)

#VALUE! - Occurs if either:
- any of the supplied arguments are non-numeric
or
- the supplied settlement or maturity dates are not recognised as valid Excel dates
#NAME? -

Occurs when Analysis ToolPak add-in is not enabled in your Excel.
You will need to enable the add-in if you want to use the Excel Pricedisc function.

  +   Show How to Do This in Excel 2003:

  +   Show How to Do This in Excel 2007:

  +   Show How to Do This in Excel 2010:

Return to the Excel Financial Functions Page

Return to the List of All Built-In Excel Functions

Valid XHTML 1.0 Transitional Valid CSS!
Disclaimer   Privacy Policy
Copyright © 2008-2013 ExcelFunctions.net