redemption: A number value representing the redemption value per $100 of par value. redemption is calculated as redemption value / face value * 100 and it must be greater than 0. Often, it is 100, meaning that the security’s redemption value is equal to its face value.
days-basis: An optional European method for dates falling on the 31st of a month.
Example
Suppose you are considering the purchase of a hypothetical security. Your purchase will settle May 1, 2009 (settle), the security will mature on June 30, 2015 (maturity), the purchase price is $67.14 per $100 of face value (price), the face value of the security (redemption) is 100 per $100 of face value, and interest is calculated based on the 30/360 days basis (days-basis).
=DISC("05/01/2009", "06/30/2015", 67.14, 100, 0) returns 5.33%, the annual discount rate implied by the pricing of this security, assuming the 30/360 days basis interest convention is utilized.