Evaluates the price of a security sold for less than its face value.

settlement—The date on which payment is made to settle a trade. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User’s Guide.

maturity—The date on which the bond comes due, and principal and accrued interest are paid. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User’s Guide.

discount_rate—The interest rate implied when a security is sold for less than its value at maturity in lieu of interest payments.

redemption—Redemption value per $100 face value of the security.

basis—The method for computing the number of days between two dates. It should be 0, 1, 2, 3, or 4.

result—The price per face value for a discounted security. If no result can be computed, NaN is returned.

Double—If present and nonzero, double precision is used.

Function DISCOUNT_PR computes the price per $100 face value of a discounted security.

It is computed using the following:

In the equation above, DSM represents the number of days starting at the settlement date and ending with the maturity date. B represents the number of days in a year based on the annual basis.

In this example, DISCOUNT_PR computes the price of the discounted bond with the settlement date of July 1, 2000, and maturity date of July 1, 2001, at the discount rate of 5% using the US (NASD) 30/360 day count method.

settlement = VAR_TO_DT(2000, 7, 1)

maturity = VAR_TO_DT(2001, 7, 1)

discount = .05

redemption = 100.

basis = 1

PRINT, DISCOUNT_PR(settlement, maturity, discount, redemption, $

   basis

; PV-WAVE prints: 95.0000