The Excel PRICEDISC Function

Related Functions:
PRICE function
YIELDDISC function

Function 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.
[basis] -

An optional integer argument that 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

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:


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-2017, with maturity date 31-Mar-2021 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-2017
2 Maturity Date: 31-Mar-2021
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.

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 ≥ 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.