PRICEDISC Function
Calculates the price of a discounted security.
Syntax
Parameters
| Parameter | Description | Required |
|---|---|---|
| settlement | Date the security is purchased. | Required |
| maturity | Date the security expires. | Required |
| discount | Discount rate of the security. | Required |
| redemption | Redemption value per $100 face value. | Required |
| basis | Day-count convention (0 = US 30/360, default). | Optional |
Basic Example
Price of a discounted Treasury bill
=PRICEDISC(DATE(2024,1,1), DATE(2024,12,31), 0.05, 100)A T-bill with a 5% discount rate redeeming at $100 in one year is priced at $95.
Advanced Examples
Example 1: With actual/360 basis
Money marketUse basis 2 for actual/360
=PRICEDISC(DATE(2024,1,1), DATE(2024,12,31), 0.05, 100, 2)How PRICEDISC Works
PRICEDISC calculates the price of a discount instrument using the formula redemption - (discount * redemption * days to maturity / days per year). It is used for zero-coupon and short-term instruments.
Important Notes & Limitations
Settlement must be before maturity.
Discount rate is entered as a decimal.
Basis affects the day count and year length.
Common Errors & Fixes
#NUM! errorInvalid dates, discount, or redemption.Fix: Verify all inputs.
#VALUE! errorDates are not recognized.Fix: Use DATE function or valid date serial numbers.
Download Practice File
PRICEDISC
pricediscPractice PRICEDISC with Real Data
Download a sample CSV file with pre-populated data and practice exercises for the PRICEDISC function. Works in both Excel and Google Sheets.
File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps