# discrate

Bank discount rate of security

## Syntax

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

## Description

example

````DiscRate = discrate(Settle,Maturity,Face,Price)`computes 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.```
````DiscRate = discrate(___,Basis)` adds an optional argument for `Basis`.```

## Examples

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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 ```

## Input Arguments

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Settlement date, specified as serial date numbers, date character vectors, or datetime arrays.

Data Types: `double` | `datetime` | `char`

Maturity date, specified as serial date number, date character vector, or datetime array.

Data Types: `double` | `char` | `datetime`

Redemption (par, face) value, specified as a numeric value.

Data Types: `double`

Security price, specified as a numeric value.

Data Types: `double`

(Optional) Day-count basis of the instrument, specified as a vector of integers.

• 0 = actual/actual (default)

• 1 = 30/360 (SIA)

• 2 = actual/360

• 3 = actual/365

• 4 = 30/360 (BMA)

• 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

Data Types: `double`

## Output Arguments

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Discount rate of security, returned as a decimal.

 Mayle. "Standard Securities Calculation Methods." Volumes I-II, 3rd edition. Formula 2.