Excel 2000 in a Nutshell

Name

PRICEDISC

Synopsis

PRICEDISC (an Analysis ToolPak function) is designed to allow you to determine the cost of a discounted security per $100 of the face value. In other words, it specifies the amount it will cost for each $100 of the value of a security.

To Calculate

=PRICEDISC(Settlement, Maturity, Discount, Redemption, Basis)

The Basis argument is the only optional argument. All other arguments must have values.

Discount

This argument must specify a numeric value that represents the discount rate for the security. For example, if the security has a discount rate of 4.5% the value of this argument is 0.045.

Example

Figure 12-22 illustrates how the PRICEDISC function can be used to determine the cost of a discounted security.