Description
IntRate returns the interest rate for an investment in a security.
Overloads
IntRate (settlementDate, maturityDate, price, redemptionValue)
IntRate (settlementDate, maturityDate, price, redemptionValue, basis)
Arguments
settlementDate is a
Date or
DateTime specifying when the security was purchased.
maturityDate is a
Date or
DateTime after the settlement date specifying when the security matures.
price is a positive number or currency specifying the value of the security when it was purchased.
redemptionValue is a positive number or currency specifying the amount to be received for the security at maturity.
basis is an optional number specifying the day basis system to use. The following types are supported:
0 - American 30/360 (default)
Action
IntRate returns the interest rate for an investment in a security. The formula used is:
= (redemptionValue - presentValue) / presentValue * (portion of the year according to the basis)
Examples
Suppose a security is purchased on January 15, 2000 for $1000, and it matures on April 30, 2000 with a redemption value of $1010. Using a 30/360 basis (common for U.S. Government bonds), the following formula can be used to calculate the interest rate.
IntRate(DateValue(2000,1,15),DateValue(2000,4,30),1000,1010,0)
Returns 0.0343 (rounded to four decimal places) corresponding to an interest rate of 3.43%.
Comments
This function is designed to work like the Excel function of the same name.