Difference between revisions of "Manuals/calci/INTRATE"

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(Created page with "<div id="6SpaceContent" class="zcontent" align="left"> '''INTRATE'''(SettlementDate, MaturityDate, Investment,Redemption,Basis) where, '''SettlementDate''' - repres...")
 
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<div id="6SpaceContent" class="zcontent" align="left">
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=INTRATE(SettlementDate, MaturityDate, Investment, Redemption, Basis)=
  
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'''INTRATE'''(SettlementDate, MaturityDate, Investment,Redemption,Basis)
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*where, <math>SettlementDate</math> is the security's settlement date (a date when coupon or a bond is purchased)
 +
*<math>MaturityDate</math> is the security's maturity date (a date when coupon or a bond expires)
 +
*<math>Investment</math> is the amount invested in the security or a bond
 +
*<math>Redemption</math> is the amount to be received at maturity of a bond
 +
*<math>Basis</math> is the type of day count basis to use
  
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where,
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INTRATE() calculates the interest rate for a fully invested security.
  
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'''SettlementDate''' - represents the settlement date.
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== Description ==
  
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'''MaturityDate''' - represents the maturity date.
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INTRATE(SettlementDate, MaturityDate, Investment, Redemption, Basis)
  
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'''Investment''' - the amount to be invested.
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*<math>SettlementDate</math> and <math>MaturityDate</math> should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
 +
*If <math>SettlementDate</math> &gt;= <math>MaturityDate</math>, Calci displays #N/A error message.
 +
*If <math>Investment</math> &lt;=0 or <math>Redemption</math> &lt;=0, Calci displays #N/A error message.
 +
*<math>Basis</math> value is optional. If omitted, Calci assumes it to be 0.  
 +
Below table shows the use of <math>Basis</math> values:
  
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'''Redemption''' - the amount to be received at maturity.
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{| class="wikitable"
 +
|-
 +
! Basis !! Description
 +
|-
 +
| 0 || US (NASD) 30/360
 +
|-
 +
| 1 || Actual/actual
 +
|-
 +
| 2 || Actual/360
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|-
 +
| 3 || Actual/365
 +
|-
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| 4 || European 30/365
 +
|}
  
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'''Basis''' - type of day count basis
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*If <math>Basis</math> value is other than 0 to 4, Calci displays #N/A error message.
 +
*Formula:
 +
If 'B' is number of days in a year, and 'D' is number of days from 'settlement' to
 +
maturity', then INTRATE is calculated as -
  
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'''Basis              Day count basis'''
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INTRATE = <math>\frac{\(redemption-investment)}{investment} X \frac{\B}{DIM}</math>
  
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0 or omitted    US 30/360
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== Examples ==
  
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1                     Actual/actual
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Consider the following example that shows the use of DURATION function:
  
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2                     Actual/360
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<div id="2SpaceContent" class="zcontent" align="left">
  
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3                     Actual/365
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{| id="TABLE3" class="SpreadSheet blue"
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|- class="even"
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| class="sshl_f" | 11/1/2010
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| class=" " |
 +
| class=" " |
  
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4                     European 30/360
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|- class="odd"
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| class="sshl_f" | 2/20/2011
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| class=" " |2/2/2014
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| class=" " |
  
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</div>
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|- class="even"
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----
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| class="sshl_f" | 500000
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<div id="1SpaceContent" class="zcontent" align="left">
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| class=" " |7000
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| class=" " |
  
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It returns the interest rate for a invested.
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|- class="odd"
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| class="sshl_f" | 800000
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| class=" " |9000
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| class=" " |
  
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'''Formula''':-
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|- class="even"
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| class="sshl_f" | 4
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| class=" " |1
 +
| class=" " |
  
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INTRATE =(Redemption-Investment)/Investment x( T/D)
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|- class="odd"
 +
| class="sshl_f" |
 +
| class=" " |
 +
| class=" " |
  
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where,
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|}
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T - number of days in a year, according on the year basis.
 
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D - number of days from settlement to maturity.
 
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</div>
 
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----
 
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<div id="7SpaceContent" class="zcontent" align="left">
 
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If Basis &lt; 0 or Basis &gt; 4 , INTRATE returns the #ERROR.
 
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If Investment &lt;= 0 or Redemption &lt;= 0, it
 
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returns the#ERROR.
 
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If SettlementDate &gt;= MaturityDate, INTRATE returns #ERRROR.
 
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</div>
 
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----
 
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<div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left">
 
  
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INTRATE
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=INTRATE(A1,A2,A3,A4,A5) displays ''1.981651376146789'' as a result.
 +
=INTRATE(DATE(2013,1,1),B2,B3,B4,B5) displays ''0.2622154311211943'' as a result.
  
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</div></div>
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== See Also ==
−
----
 
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<div id="8SpaceContent" class="zcontent" align="left">
 
  
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Lets see an example in (Column1, Row6)
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*[[Manuals/calci/RATE | RATE]]
  
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<nowiki>=INTRATE(R1C1, R2C1, R3C1, R4C1, R5C1)</nowiki>
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== References ==
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INTRATE returns 1.981651.
 
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Consider another example
 
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<nowiki>=INTRATE(date(1/1/2007),date(2/2/2008),5000,4000,5)</nowiki>
 
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It returns #ERROR.
 
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</div>
 
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----
 
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<div id="10SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Syntax </div><div class="ZEditBox"><center></center></div></div>
 
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----
 
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<div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
 
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----
 
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<div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
 
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----
 
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<div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
 
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----
 
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<div id="2SpaceContent" class="zcontent" align="left">
 
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{| id="TABLE3" class="SpreadSheet blue"
 
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|- class="even"
 
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| class=" " |
 
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| class="  " | Column1
 
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| class=" SelectTD ChangeBGColor SelectTD" |
 
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<div id="2Space_Handle" class="zhandles" title="Click and Drag to resize CALCI Column/Row/Cell. It is EZ!"></div><div id="2Space_Copy" class="zhandles" title="Click and Drag over to AutoFill other cells."></div><div id="2Space_Drag" class="zhandles" title="Click and Drag to Move/Copy Area.">[[Image:copy-cube.gif]]  </div>Column2
 
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| Column3
 
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| Column4
 
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|- class="odd"
 
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| class=" " | Row1
 
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| class=" " | 11/1/2007
 
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| 0
 
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| 0
 
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| 0
 
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|- class="even"
 
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| class="  " | Row2
 
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| class=" " | 2/20/2008
 
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| 0
 
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| 0
 
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| 0
 
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|- class="odd"
 
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| Row3
 
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| class=" " | 500000
 
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| 0
 
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| 0
 
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| 0
 
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|- class="even"
 
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| Row4
 
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| class=" " | 800000
 
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| 0
 
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| 0
 
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| 0
 
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|- class="odd"
 
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| class=" " | Row5
 
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| class="sshl_f " | 4
 
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| 0
 
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| 0
 
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| 0
 
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|- class="even"
 
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| Row6
 
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| class="sshl_f" | 1.981651
 
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| 0
 
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| 0
 
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| 0
 
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|}
 
  
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<div align="left">[[Image:calci1.gif]]</div></div>
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*[http://en.wikipedia.org/wiki/Interest_rate_derivative Interest Rate Derivative]
−
----
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*[http://en.wikipedia.org/wiki/Day_count_convention Day Count Basis]

Revision as of 16:17, 3 January 2014

INTRATE(SettlementDate, MaturityDate, Investment, Redemption, Basis)

  • where, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle SettlementDate} is the security's settlement date (a date when coupon or a bond is purchased)
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle MaturityDate} is the security's maturity date (a date when coupon or a bond expires)
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Investment} is the amount invested in the security or a bond
  • is the amount to be received at maturity of a bond
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Basis} is the type of day count basis to use

INTRATE() calculates the interest rate for a fully invested security.

Description

INTRATE(SettlementDate, MaturityDate, Investment, Redemption, Basis)

  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle SettlementDate} and Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle MaturityDate} should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
  • If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle SettlementDate} >= Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle MaturityDate} , Calci displays #N/A error message.
  • If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Investment} <=0 or Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Redemption} <=0, Calci displays #N/A error message.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Basis} value is optional. If omitted, Calci assumes it to be 0.

Below table shows the use of Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Basis} values:

Basis Description
0 US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/365
  • If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Basis} value is other than 0 to 4, Calci displays #N/A error message.
  • Formula:

If 'B' is number of days in a year, and 'D' is number of days from 'settlement' to maturity', then INTRATE is calculated as -

INTRATE = Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle \frac{\(redemption-investment)}{investment} X \frac{\B}{DIM}}

Examples

Consider the following example that shows the use of DURATION function:

11/1/2010
2/20/2011 2/2/2014
500000 7000
800000 9000
4 1 
=INTRATE(A1,A2,A3,A4,A5) displays 1.981651376146789 as a result.
=INTRATE(DATE(2013,1,1),B2,B3,B4,B5) displays 0.2622154311211943 as a result.

See Also

References

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