DIS

Updated 2024-02-22 20:58:26.193000

Syntax

SELECT [westclintech].[wct].[DIS](
  <@DSM, float,>
 ,<@RV, float,>
 ,<@P, float,>
 ,<@D, float,>)

Description

Use the scalar function DIS to calculate the price or discount rate for a discount security. The formula for price is:

\mathrm{P=RV-DR\times{RV}\times\frac{DSM}{B}}

Where:

{"columns":[{"field":"column 1"},{"field":"column 2"},{"field":"column 3"}],"rows":[{"column 1":"B","column 2":"=","column 3":"Number of days in the year"},{"column 1":"DR","column 2":"=","column 3":"Discount Rate"},{"column 1":"DSM","column 2":"=","column 3":"Number of days from settlement date to maturity date"},{"column 1":"P","column 2":"=","column 3":"Price per 100 par value"},{"column 1":"RV","column 2":"=","column 3":"Redemption Value"}]}

The formula for discount rate is:

\mathrm{DR=\frac{RV-P}{RV}\times{\frac{B}{DSM}}

Where:

{"columns":[{"field":"column 1"},{"field":"column 2"},{"field":"column 3"}],"rows":[{"column 1":"B","column 2":"=","column 3":"Number of days in the year"},{"column 1":"DR","column 2":"=","column 3":"Discount Rate"},{"column 1":"DSM","column 2":"=","column 3":"Number of days from settlement date to maturity date"},{"column 1":"P","column 2":"=","column 3":"Price per 100 par value"},{"column 1":"RV","column 2":"=","column 3":"Redemption Value"}]}

The DIS function allows you to pass values for B, DSM, RV and either DR or P and returns the other.

Arguments

@D

the discount rate on the security. @D is an expression of type float or of a type that can be implicitly converted to float.

@P

the price of the security. @P is an expression of type float or of a type that can be implicitly converted to float. ### @RV the redemption value. @RV is an expression of type float or of a type that can be implicitly converted to float.

@DSM

the time in years from settlement to maturity. @DSM is an expression of type float or of a type that can be implicitly converted to float.

Return Type

float

Remarks

If @DSM is NULL then @DSM = 0.

If @RV is NULL then @RV = 100.

If @D is NULL and @P is NULL then NULL is returned.

If @D is not NULL then the function calculates the price from the inputs otherwise the function calculates the discount rate.

Examples

In this example we calculate the discount rate for a security with a price of 99.72 and redemption value of 100. There are 69 days from settlement to maturity and 365 days in the year.

SELECT wct.DIS(   69 / 365E+00, --@DSM

                  100.00,       --@RV

                  99.72,        --@P

                  NULL          --@D

              ) as [Discount Rate];

This produce the following result.

{"columns":[{"field":"Discount Rate","headerClass":"ag-right-aligned-header","cellClass":"ag-right-aligned-cell"}],"rows":[{"Discount Rate":"0.0148115942028987"}]}

In this example we calculate the price for a security with a discount rate of 1.9%. There are 131 days from settlement to maturity and 360 days in the year.

SELECT wct.DIS(   131 / 360E+00, --@DSM

                  10000.00,      --@RV

                  NULL,          --@P

                  0.019          --@D

              ) as [Price];

This produces the following result.

{"columns":[{"field":"Price","headerClass":"ag-right-aligned-header","cellClass":"ag-right-aligned-cell"}],"rows":[{"Price":"9930.86111111111"}]}

In this example we calculate the price for a security with a discount rate of 5.5%. There are 190 days from settlement to maturity and 364 days in the year.

SELECT wct.DIS(   190 / 364E+00, --@DSM

                  1000000.00,    --@RV

                  NULL,          --@P

                  0.055          --@D

              ) as [Price];