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 (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:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
1actual/actual
2actual/360
3actual/365
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 arguments should be entered into the function as either:

or

Warning:


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:

 AB
1Settlement Date:01-Apr-2011
2Maturity 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
  • 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
  • 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.

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