Manuals/calci/INTRATE

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

• where, $SettlementDate$ is the security's settlement date (a date when coupon or a bond is purchased)
• $MaturityDate$ is the security's maturity date (a date when coupon or a bond expires)
• $Investment$ is the amount invested in the security or a bond
• $Redemption$ is the amount to be received at maturity of a bond
• $Basis$ 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)

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

Below table shows the use of $Basis$ values:

Basis	Description
0	US (NASD) 30/360
1	Actual/actual
2	Actual/360
3	Actual/365
4	European 30/365

• If $Basis$ 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 = ${\frac {(redemption-investment)}{investment}}x{\frac {B}{DIM}}$

Examples

Consider the following example that shows the use of INTRATE 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

• RATE

References

• Interest Rate Derivative
• Day Count Basis