DISC Function in Google Sheets

Calculate the discount rate of a security using the DISC function.

DISC Function

The DISC function in Google Sheets calculates the discount rate of a security based on the settlement price, maturity price, and other factors.

Syntax

DISC(settlement, maturity, price, redemption, [day_count_convention])
  • settlement: The security’s settlement date. This is a required parameter.
  • maturity: The security’s maturity date. This is a required parameter.
  • price: The security’s price per $100 of face value. This is a required parameter.
  • redemption: The redemption value per $100 of face value. This is a required parameter.
  • day_count_convention: (Optional) The day count convention to use. Default is 0 (30/360 convention).

Examples

  1. Basic Discount Rate Calculation

Calculate the discount rate for a security with a settlement date of January 1, 2024, maturity date of January 1, 2025, price of $95, and redemption value of $100:

=DISC(DATE(2024,1,1), DATE(2025,1,1), 95, 100)

This will output 5.2632%.

Notes

  • The DISC function is useful for evaluating the discount rate on short-term bonds and other securities.
  • The day_count_convention parameter can significantly affect the output depending on the chosen convention.
  • YIELD: Calculate the yield of a security.
  • INTRATE: Calculate the interest rate of a security.