discount

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.

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.

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) |