Name

discount — Return discount curve.

Syntax

discount(curve, step, method, max)
              

The DISCOUNT function has the following arguments:

rate

The curve for which to determine the minimum Y value.

step

The curve for which to determine the minimum Y value.

method

The method to use for sampling. Currently only 'mid' is supported.

max

The maximum X-value to sample.

Description

Return a discount curve for the given discount rate. The curve extends from zero to the maximum value by the step size. The X-values are sampled at each step according to the method parameter. The discount value is calculated at each step by raising the rate plus one to the number of years in to the future.

Besides the calculated values at the sampled points, the curve also includes the value of 1 at time 0, and the appropriate value at the maximum.

The only support method is 'Half', which samples the X-value at the mid-point of each step. Other sampling methods may be added when requested.

Examples

Formula

Description

Result

discount(0.04, 5, 'Half', 10)

Return a discount curve.(curve(0,1, 2.5,1.1, 7.5,1.34, 10,1.48)