DISC Function Explained
The DISC function in Microsoft Excel calculates the discount rate for a series of cash flows. It takes three arguments: cost, salvage, and life. The cost argument is the initial cost of the asset, the salvage argument is the value of the asset at the end of its useful life, and the life argument is the number of periods over which the asset is being depreciated. The DISC function returns the discount rate for the series of cash flows.
DISC Function Syntax
DISC(settlement, maturity, pr, redemption, basis)
- settlement: The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
- maturity: The security’s maturity date. The maturity date is the date when the security expires.
- pr: The security’s price per $100 face value.
- redemption: The security’s redemption value per $100 face value.
- basis: The type of day count basis to use. The basis must be between 0 and 4.