Quick Navigation
PRICEDISC Function
Summary
The PRICEDISC function calculates the price per $100 face value of a discounted security, such as a Treasury bill, based on settlement date, maturity date, discount rate, and redemption value. Essential for fixed-income analysis and bond pricing.
Syntax
PRICEDISC(settlement, maturity, discount, redemption, [basis])Parameters
| Parameter | Type | Required | Description |
|---|---|---|---|
| settlement | Date |
Yes | Security's settlement date (when traded to buyer) |
| maturity | Date |
Yes | Security's maturity date (when it expires) |
| discount | Number |
Yes | Annual discount rate as decimal (ex: 0.0525 for 5.25%) |
| redemption | Number |
Yes | Redemption value per $100 face value (typically 100) |
| basis | Number |
No | Day count basis (0-4). Optional, defaults to 0 (US 30/360) |
Using the PRICEDISC Function
PRICEDISC is used by financial analysts to price discounted securities like Treasury bills and commercial paper. It accounts for different day count conventions and provides accurate pricing based on market discount rates.
Common PRICEDISC Examples
Basic Treasury Bill Pricing
=PRICEDISC(DATE(2008,2,16),DATE(2008,3,1),0.0525,100,2)Prices a T-bill settling Feb 16, maturing Mar 1 at 5.25% discount using Actual/360 basis. Returns approximately $99.80.
Using Cell References
=PRICEDISC(A2,B2,C2,D2,E2)References example data: Settlement A2, Maturity B2, Discount C2 (5.25%), Redemption D2 ($100), Basis E2 (2).
European 30/360 Basis
=PRICEDISC("2/15/2008","6/30/2008",0.04,100,4)Prices security using European 30/360 day count convention.
Frequently Asked Questions
Common Errors and Solutions
#VALUE!
Cause: Settlement or maturity not valid Excel dates
Solution: Use DATE(YYYY,MM,DD) function or ensure cells are formatted as dates
#NUM! - discount ≤ 0
Cause: Discount rate is zero or negative
Solution: Enter positive discount rate as decimal (ex: 5.25% = 0.0525)
#NUM! - settlement ≥ maturity
Cause: Settlement date equals or exceeds maturity date
Solution: Verify dates are in correct chronological order
#NUM! - invalid basis
Cause: Basis argument outside 0-4 range
Solution: Use basis values: 0=US30/360, 1=Actual/actual, 2=Actual/360, 3=Actual/365, 4=European30/360
Notes
- Always use DATE function for dates to avoid #VALUE! errors
- Redemption value typically 100 for $100 face value securities
- Discount rate entered as decimal (5% = 0.05)
- Function truncates dates and basis to integers
- Ideal for pricing T-bills, commercial paper, and other discount instruments
Compatibility
Available in: Excel 2007, Excel 2010, Excel 2013, Excel 2016, Excel 2019, Excel 2021, Excel 365, Excel for Mac, Excel Online
Not available in: Excel 2003, Excel XP, Excel 2000, Excel 97
Content last reviewed: December 9, 2025
Update frequency: As needed
Excel versions tested: Excel 2007+