Calculate the Price of a Discounted Security with PRICEDISC


show more PRICEDISC: Calculating the price of a discounted security provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth show less
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PRICEDISC: Calculating the price of a discounted security

When you evaluate a bond, either one that you're creating or one that you want to buy, you need to evaluate its price. If you know the start and end date the interest you'll pay and the redemption value, you can use the PRICEDISC function to calculate the bonds price. The information you need to know appears here in the sample workbook and cell C3 is the settlement date and that is the date that you take possession of the bond. Then the maturity date, that's the last date of the bonds life. That is the day it matures.

Then the discount rate and that is the interest rate applied to the investment. Then we have the redemption value and that's usually set to $100, but in this case there is no default value so we set it to 100. And then in cell C7 we have basis. The basis is how you count the days in a month and a year. So in this case we have option number 1 and that is actual. That means that you count the actual number of days instead of using some sort of an abstraction. S...

PRICEDISC: Calculating the price of a discounted security
Video duration: 2m 48s 2h 18m Intermediate

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PRICEDISC: Calculating the price of a discounted security provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth

Subjects:
Business IT
Software:
Excel
Author:
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