PRICEDISCfunction in Google Sheets is a financial function that calculates the price per $100 face value of a discounted security based on its discount rate. The function assumes that the security is sold on its maturity date and that interest is calculated on a 360-day year. The function can be used to determine the price of a US Treasury bill, commercial paper, or other money-market instrument.
- How to use
- Examples of using
PRICEDISCformula not working?
- Similar formulas to
PRICEDISC formula with the syntax shown below, it has 4 required parameters and 1 optional parameter:
- settlement (required):
The settlement date of the security as a date, date represented as a string, or a reference to a cell containing a date.
- maturity (required):
The maturity date of the security as a date, date represented as a string, or a reference to a cell containing a date.
- discount (required):
The discount rate of the security as a percentage.
- redemption (required):
The redemption price per $100 face value of the security.
- day_count_convention (optional):
An optional argument that specifies the day count convention to use. If omitted, the function uses the default 30/360 day count convention.
ExamplesHere are a few example use cases that explain how to use the
PRICEDISCformula in Google Sheets.
Calculating the price of a US Treasury bill
PRICEDISC function can be used to calculate the price per $100 face value of a US Treasury bill based on its discount rate.
Calculating the price of commercial paper
PRICEDISC function can be used to calculate the price per $100 face value of commercial paper based on its discount rate.
Calculating the yield of a discounted security
By using the
PRICEDISC function in conjunction with other financial functions, the yield of a discounted security can be calculated.
PRICEDISCnot working? Here are some common mistakes people make when using the
PRICEDISCGoogle Sheets Formula:
Incorrect order of arguments
One common mistake is to provide the arguments in the wrong order. Make sure the settlement date comes first, followed by the maturity date, the discount rate, the redemption value, and the optional day count convention.
Invalid date format
The dates provided as arguments should be in a valid date format. Check that the dates you are using are recognized by Google Sheets and are not formatted as text.
Discount rate not in decimal format
The discount rate should be provided as a decimal, not a percentage. For example, 5% should be entered as 0.05.
Redemption value not numeric
Make sure that the redemption value is a numeric value. If you are referring to a cell, check that it contains a number and not text or a formula that returns an error.
Invalid day count convention
If you are using the optional day count convention argument, make sure you are using a valid convention. Refer to the Google Sheets documentation for a list of acceptable values.
The following functions are similar to
PRICEDISC or are often used with it in a formula:
PRICEfunction calculates the price per $100 face value of a security that pays periodic interest. It is commonly used to determine the current value of a bond. The function takes the settlement date, maturity date, annual coupon rate, yield, redemption value, and frequency of coupon payments as input. It returns the price of the security, which is the sum of the present value of the coupon payments and the present value of the redemption value.
PRICEMATfunction calculates the price per $100 face value of a security that pays interest at maturity. It is most commonly used in financial analysis to determine the value of a security. The function takes into account the settlement date, maturity date, issue date, annual coupon rate, yield, and day count convention.
The YIELD function calculates the yield of a security that pays periodic interest. The yield is the annualized percentage rate returned on the bond, assuming the bond is held until maturity. This function is commonly used in finance and investment analysis.
YIELDDISCfunction calculates the annual yield of a discounted security, based on the year-end yield, settlement date, maturity date, price, and redemption value. This function is commonly used in financial analysis to determine the yield of a discounted security, such as a treasury bill or commercial paper.
DISCfunction calculates the discount rate of a security. It is commonly used in finance to determine the rate at which an investor can expect to earn a return on a security. The discount rate is calculated by taking the difference between the redemption price and the purchase price, and then dividing by the redemption price.
You can learn more about the
PRICEDISC Google Sheets function on Google Support.