Banker's Acceptance Discount
Calculate simple banker's-acceptance discount and proceeds with an explicit day-count basis.
Description
A banker's acceptance can be priced using a simple discount on face value and an explicit day-count basis.
A banker's acceptance can be priced using a simple discount on face value and an explicit day-count basis.1
Calculate simple banker's-acceptance discount and proceeds with an explicit day-count basis.
When to use Banker's Acceptance Discount
Use this tool to calculate simple banker's-acceptance discount and proceeds with an explicit day-count basis.
Prepare the supplied account terms, common-currency amounts or recorded indicators requested. Determine applicable thresholds separately.
How to use Banker's Acceptance Discount and understand its results
- Prepare the supplied account terms, common-currency amounts or recorded indicators requested. Determine applicable thresholds separately.
- Enter faceValue, annualDiscountRatePercent, daysToMaturity, dayCountBasis using the field table and calculation rules, then run the tool.
- Read discountAmount, proceeds. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| faceValue | Face value (currency) | number; minimum: 0 | Required |
| annualDiscountRatePercent | Annual discount rate (%) | number; minimum: 0 | Required |
| daysToMaturity | Days to maturity (days) | integer; minimum: 0 | Required |
| dayCountBasis | Day-count basis (days) | integer; minimum: 1 | Required |
Enter nonnegative face/rate and integer days, positive integer basis. Reject negative proceeds; return discount/proceeds.
discount=face×rate%/100×days/basis; proceeds=face−discount Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| discountAmount | Discount amount (currency) | number; minimum: 0 |
| proceeds | Discounted proceeds (currency) | number |
{
"input": {
"faceValue": 100000,
"annualDiscountRatePercent": 6,
"daysToMaturity": 90,
"dayCountBasis": 360
},
"output": {
"discountAmount": 1500,
"proceeds": 98500
}
}Limitations and assumptions
No market quote, credit risk, compound yield or date convention is inferred.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Debt Consolidation Breakeven: Calculate monthly savings and fee break-even time for a consolidation scenario. For a complementary task, use Deposit Account Comparison: Compare two deposit accounts from balances, disclosed APYs, and annual fees.
References
-
Banker's Acceptance Discount — tool.io
Similar or alternative tools
- Debt Consolidation Breakeven
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- Deposit Account Comparison
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