# Documentation

### This is machine translation

Translated by
Mouseover text to see original. Click the button below to return to the English version of the page.

# discrate

Bank discount rate of money market security

## Syntax

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

## Arguments

 `Settle` Enter as serial date numbers, date character vectors, or datetime arrays. `Settle` must be earlier than `Maturity`. `Maturity` Enter as serial date numbers, date character vectors, or datetime arrays. `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 (ICMA)9 = actual/360 (ICMA)10 = actual/365 (ICMA)11 = 30/360E (ICMA) 12 = actual/365 (ISDA)13 = BUS/252 For 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

collapse all

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 ```

This example shows how to use `datetime` inputs to find the bank discount rate of a security.

`DiscRate = discrate(datetime('12-jan-2000','Locale','en_US'), datetime('25-jun-2000','Locale','en_US'), 100, 97.74, 0)`
```DiscRate = 0.0501 ```

## References

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