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DISC

The DISC function in Google Sheets is a powerful tool to calculate the discount rate of a security based on price. This function is commonly used in finance and investment analysis. Whether you're evaluating bond prices or valuing financial assets, the DISC function simplifies the task. Dive into our comprehensive guide to understand its syntax and parameters.

Function Syntax and Parameters

Syntax: DISC(settlement, maturity, price, redemption, [day_count_convention])

Parameters:

  • settlement: The security's settlement date, represented as a serial number.
  • maturity: The security's maturity or end date, represented as a serial number.
  • price: The security's price per $100 face value.
  • redemption: The security's redemption value per $100 face value.
  • day_count_convention : [Optional] The day count basis to use.

Step-by-Step Tutorial

  1. Calculating discount rate using DISC:
    • Example: =DISC(A2,B2,C2,D2)
    • Result: The discount rate of the given security.

Use Cases and Scenarios

  1. Bond Valuation: Calculate the discount rate for a bond.
  2. Investment Analysis: Evaluate the present value of a financial asset.
  3. Financial Modeling: Determine the discount rate in a project evaluation.

Related Functions

  • YIELD: Calculates the yield of a security based on price and other parameters.
  • PRICE: Calculates the price of a security based on yield and other parameters.

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