excel formula for calculating discount
Enter Redemption Price: into cell A4 and the corresponding price into cell B4, $100 in this example. Now use the corresponding Excel function, DISC, to calculate the discount rate for the bond. In cell A5, enter Discount Rate: to label the value in cell B5.The function DISC takes in specific parameters in a specific order of settlement date, maturity date, price and redemption price. In cell B5 enter =DISC(B1, B2, B3, B4). The discount rate is determined to be 1%.You can calculate the discount factor over time by using the formula: D = 1Ã·(1+r)^n, where D is the discount factor, r is the discount rate, and n is the number of years.he discount rate is determined to be 1%. You can calculate the discount factor over time by using the formula: D = 1Ã·(1+r)^n, where D is the discount factor, r is the discount rate, and n is the number of years.