Formulas and Functions

Table Of Contents

Â days-basis: An optional argument specifying the number of days per month and

days per year used in the calculations.

30/360 (0 or omitted): 30 days in a month, 360 days in a year, using the NASD

method for dates falling on the 31st of a month.

actual/actual (1): Actual days in each month, actual days in each year.

actual/360 (2): Actual days in each month, 360 days in a year.

actual/365 (3): Actual days in each month, 365 days in a year.

30E/360 (4): 30 days in a month, 360 days in a year, using the European method for

dates falling on the 31st of a month (European 30/360).

Example

In this example, the DISC function is used to determine the annual discount rate of the hypothetical

security described by the values listed.

The function evaluates to 5.25%, the annual discount rate.

settle maturity price redemption days-basis

=DISC(B2, C2, D2,

E2, F2)

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