Financial Toolbox

discrate

Syntax

DiscRate = discrate(Settle, Maturity, Face, Price, 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.
Price	Price of the security.
Basis	(Optional) Day-count basis: 0 = actual/actual (default), 1 = 30/360, 2 = actual/360, 3 = actual/365.

Description
DiscRate = discrate(Settle, Maturity, Face, Price, Basis) finds the bank discount rate of a security. The bank discount rate normalizes by the face value of the security (e.g., U. S. Treasury Bills) and understates the true yield earned by investors.

Examples

DiscRate = discrate('12-jan-2000', '25-jun-2000', 100, 97.74, 0)

DiscRate =
    0.0501

See Also
acrudisc, fvdisc, prdisc, ylddisc

References
Mayle, Standard Securities Calculation Methods, Volumes I-II, 3rd edition. Formula 1.

disc2zero

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