PRICEDISC

• How to use PRICEDISC formula?
• Examples of using PRICEDISC formula
• PRICEDISC formula not working?
• Similar formulas to PRICEDISC

Usage

Use the PRICEDISC formula with the syntax shown below, it has 4 required parameters and 1 optional parameter:

=PRICEDISC(settlement, maturity, discount, redemption, [day_count_convention])

1. 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.
2. 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.
3. discount (required):
   The discount rate of the security as a percentage.
4. redemption (required):
   The redemption price per $100 face value of the security.
5. 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.

Examples

Calculating the price of a US Treasury bill

The 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

The 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.

Common Mistakes

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.

Related Formulas

The following functions are similar to PRICEDISC or are often used with it in a formula:

• PRICE

  The PRICE function 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.

• PRICEMAT

  The PRICEMAT function 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.

• YIELD

  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.

• YIELDDISC

  The YIELDDISC function 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.

• DISC

  The DISC function 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.

Learn More

You can learn more about the PRICEDISC Google Sheets function on Google Support.