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# discrate

Bank discount rate of money market security

## Syntax

```DiscRate = discrate(Settle, Maturity, Face, Price, Basis)
```

## Arguments

 Settle Enter as serial date numbers or date strings. Settle must be earlier than Maturity. Maturity Enter as serial date numbers or date strings. Face Redemption (par, face) value. Price Price of the security. Basis (Optional) Day-count basis of the instrument. A vector of integers. 0 = actual/actual (default)1 = 30/360 (SIA)2 = actual/3603 = actual/3654 = 30/360 (PSA)5 = 30/360 (ISDA)6 = 30/360 (European)7 = actual/365 (Japanese)8 = actual/actual (ISMA)9 = actual/360 (ISMA)10 = actual/365 (ISMA)11 = 30/360E (ISMA) 12 = actual/365 (ISDA)13 = BUS/252For more information, see basis.

## 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 (for example, U. S. Treasury Bills) and understates the true yield earned by investors.

## Examples

expand all

### Compute the Bank Discount Rate of a Security

This example shows how to find the bank discount rate of a security.

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

0.0501

```

## References

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