The Excel PRICEDISC 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 (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 which specifies the financial day count basis that is used by the security. Possible values are:

BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
4European 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 dates should be entered into the function as either:


Warning: If you attempt to input the date arguments as text, the interpretion of these can differ, depending to the date system and date interpretation settings on your computer.

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:

1Settlement Date:01-Apr-2011
2Maturity Date:31-Mar-2015
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:

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

Occurs if either:

  • The settlement date ≥ maturity date;
  • 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).

Occurs if either:

  • The supplied settlement or the maturity arguments are not valid Excel dates
  • Any of the supplied arguments are non-numeric.