DAX

Dax Function: PRICEDISC

Q: How does the basis parameter affect calculations?

The basis parameter determines the day count convention, which influences the calculation of time between settlement and maturity.

Q: What happens if the discount rate is 0?

The function will return the redemption value, as there is no discount applied.

Category: Financial Functions

The PRICEDISC function in Power BI calculates the price per $100 face value of a discounted security, such as Treasury bills, based on settlement and maturity dates, discount rate, and face value.

Purpose

To evaluate the price of discounted securities that do not pay periodic interest.
Useful for determining the market value of zero-coupon bonds and short-term debt instruments.

Type of Calculations

Computes the price of a security by applying the discount rate over the period from settlement to maturity.
Provides an accurate valuation of securities sold below their face value.

Practical Use Cases

Valuing Discount Securities: Assess the fair value of Treasury bills or zero-coupon bonds.
Investment Analysis: Compare the pricing of short-term securities across different discount rates.
Risk Assessment: Calculate the impact of discount rate changes on security prices.


PRICEDISC(settlement, maturity, discount, redemption, [basis])

Parameter	Type	Description
`settlement`	Scalar	The settlement date, or the date the security is traded to the buyer.
`maturity`	Scalar	The maturity date, or the date the security expires and face value is repaid.
`discount`	Scalar	The annual discount rate of the security as a decimal (e.g., 5% = 0.05).
`redemption`	Scalar	The redemption value per $100 face value (typically 100).
`[basis]`	Scalar	Optional. Day count basis: `0` (US 30/360), `1` (Actual/Actual), `2` (Actual/360), `3` (Actual/365), `4` (European 30/360). Defaults to `0`.

How Does PRICEDISC Dax Works

Mathematical Principle

The price of a discounted security is derived using the formula:

Where:

Redemption is the face value of the security (typically $100).
Discount is the annual discount rate as a fraction.
Year Basis depends on the chosen day count convention.

What Does It Return?

Scalar Value: The calculated price of the discounted security per $100 face value.
Returns a positive numeric value reflecting the price under the specified discount rate and time period.

When Should We Use It?

Discount Security Pricing: Ideal for valuing zero-coupon bonds and T-bills.
Interest Rate Scenarios: Compare security prices under different discount rates.
Financial Reporting: Calculate and visualize the valuation of short-term securities in dashboards.

Examples

Basic Usage :

Calculate the price of a discounted security with a 5% discount rate, $100 redemption value, and a maturity 90 days after settlement.


PRICEDISC(DATE(2025, 4, 11), DATE(2025, 7, 10), 0.05, 100, 0)

Result: $98.75

Column Usage

Suppose you have a table of discounted securities with varying parameters:

SecurityID	Settlement	Maturity	Discount	Redemption
1	2025-04-11	2025-07-10	0.05	100
2	2025-04-11	2025-10-10	0.07	100

Add a calculated column for security prices:


SecurityPrice = PRICEDISC(Securities[Settlement], Securities[Maturity], Securities[Discount], Securities[Redemption], 0)

Advanced Usage

Combine PRICEDISC with conditional logic to calculate prices based on dynamic discount rates:


DynamicPrice =
IF(Securities[Discount] &gt; 0.06,
PRICEDISC(Securities[Settlement], Securities[Maturity], 0.06, Securities[Redemption], 0),
PRICEDISC(Securities[Settlement], Securities[Maturity], Securities[Discount], Securities[Redemption], 0)
)

Result: Outputs prices adjusted for a cap on the discount rate.

Tips and Tricks

Use consistent date formats for settlement and maturity to avoid errors.
Select the correct basis to align with market conventions.
Using an incorrect discount rate format (e.g., entering 5 instead of 0.05).
Ignoring the day count convention, which may lead to inaccurate results.

Performance Impact of PRICEDISC DAX Function:

Efficient for individual calculations.
For large datasets, pre-calculate frequently used parameters to enhance performance.

Related Functions You Might Need

Function	Description
`PRICE`	Calculates the price of a bond paying periodic interest.
`YIELD`	Calculates the annual yield of a security based on its price.
`DURATION`	Computes the Macaulay duration of a bond, useful for understanding interest rate sensitivity.

Want to Learn More?
For more information, check out the official Microsoft documentation for PRICEDISC You can also experiment with this function in your Power BI reports to explore its capabilities.

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1. What does the PRICEDISC function calculate?

The PRICEDISC function calculates the price per $100 face value of a discounted security, based on its discount rate and time to maturity.

2. Can I use PRICEDISC for Treasury bills?

Yes, the function is commonly used to price Treasury bills and other short-term discounted securities.

3. How does the basis parameter affect calculations?

The basis parameter determines the day count convention, which influences the calculation of time between settlement and maturity.

4. What happens if the discount rate is 0?

The function will return the redemption value, as there is no discount applied.

5. Can PRICEDISC handle large datasets?

Yes, but for optimal performance, ensure proper formatting and pre-calculate constant parameters when possible.

Dax Function: PRICE

Dax Function: PRICEMAT