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#Financial

INTRATE

Excel Functions

Get interest rate for fully invested security

Syntax

EXCEL 
=INTRATE(settlement, maturity, investment, redemption, [basis])

Arguments

Parameter Description
settlement Settlement date of the security.
maturity Maturity date of the security.
investment The amount originally invested.
redemption The amount received at maturity.
basis [optional] Day count basis (see below, default =0).

Return Value

Interest rate as percentage

Details

The INTRATE function calculates the annual effective interest rate for a "fully invested" security. A fully invested security does not pay periodic interest before maturity. The interest income is the difference between the redemption value of the security and the original investment. In the example shown, we want to find the effective annual interest rate for a bond with a price of $895.00 and a redemption value of $1000. The settlement date is 6-Jul-2017 and the maturity date is 15-Jan-2020. There are no periodic interest payments, and the day count basis is US (NASD) 30/360. The formula in F5 is: With these inputs, the INTRATE function returns 4.65%, with percentage number format applied. In Excel, dates are serial numbers. Generally, the best way to enter valid dates is to use cell ref

Examples

Example

In the example shown, we want to find the effective annual interest rate for a bond with a price of $895.00 and a redemption value of $1000. The settl

EXCEL 
=INTRATE(C7,C8,C5,C9,C10)
Entering dates

In Excel, dates are serial numbers. Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid da

EXCEL 
=INTRATE(DATE(2017,7,6),DATE(2020,1,15),895,1000,0)

See Also

DISC