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"
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|-
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! Basis !! Description
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|-
 +
| 0 || US (NASD) 30/360
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|-
 +
| 1 || Actual/actual
 +
|-
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| 2 || Actual/360
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|-
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| 3 || Actual/365
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|-
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| 4 || European 30/365
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|}
  
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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.
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*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=" " |
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| 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
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| class=" " |
  
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INTRATE =(Redemption-Investment)/Investment x( T/D)
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|- class="odd"
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| class="sshl_f" |
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| class=" " |
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| 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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----
 
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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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----
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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, is the security's settlement date (a date when coupon or a bond is purchased)
  • is the security's maturity date (a date when coupon or a bond expires)
  • is the amount invested in the security or a bond
  • is the amount to be received at maturity of a bond
  • 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)

  • and should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
  • If >= , Calci displays #N/A error message.
  • If <=0 or <=0, Calci displays #N/A error message.
  • value is optional. If omitted, Calci assumes it to be 0.

Below table shows the use of values:

Basis Description
0 US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/365
  • If 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 (syntax error): {\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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