Financial Toolbox

prdisc

Price of discounted security

Syntax

• Price = prdisc(Settle, Maturity, Face, Discount, Basis)
  

Arguments

Settle	Enter as serial date number or date string. Settle must be earlier than or equal to Maturity.
Maturity	Enter as serial date number or date string.
Face	Redemption (par, face) value.
Discount	Bank discount rate of the security. Enter as decimal fraction.
Basis	(Optional) Day-count basis: 0 = actual/actual (default), 1 = 30/360, 2 = actual/360, 3 = actual/365.

Description

Price = prdisc(Settle, Maturity, Face, Discount, Basis) returns the price of a security whose yield is quoted as a bank discount rate (e.g., U. S. Treasury Bills).

Examples

Using this data

• Settle = '10/14/2000';
  Maturity = '03/17/2001';
  Face = 100;
  Discount = 0.087;
  Basis = 2;
  
  Price = prdisc(Settle, Maturity, Face, Discount, Basis)
  

returns

•  Price =
  
           96.2783
  

See Also
acrudisc, bndprice, discrate, prmat, ylddisc

References

Mayle, Standard Securities Calculation Methods, Volumes I-II, 3rd edition. Formula 2.

prbyzero

prmat