INTRATE function

Returns the interest rate for a fully invested security.

Syntax

INTRATE(settlement,maturity,investment,redemption,basis)

 Important   Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text.

Settlement     is the security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.

Maturity     is the security's maturity date. The maturity date is the date when the security expires.

Investment     is the amount invested in the security.

Redemption     is the amount to be received at maturity.

Basis     is the type of day count basis to use.

Basis Day count basis
0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360


Remarks

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900. Microsoft Excel for the Macintosh uses a different date system as its default.
  • The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose a 30-year bond is issued on January 1, 2008, and is purchased by a buyer six months later. The issue date would be January 1, 2008, the settlement date would be July 1, 2008, and the maturity date would be January 1, 2038, which is 30 years after the January 1, 2008, issue date.
  • Settlement, maturity, and basis are truncated to integers.
  • If settlement or maturity is not a valid date, INTRATE returns the #VALUE! error value.
  • If investment ≤ 0 or if redemption ≤ 0, INTRATE returns the #NUM! error value.
  • If basis < 0 or if basis > 4, INTRATE returns the #NUM! error value.
  • If settlement ≥ maturity, INTRATE returns the #NUM! error value.
  • INTRATE is calculated as follows:

Equation

where:

B = number of days in a year, depending on the year basis.

DIM = number of days from settlement to maturity.

Example

The example may be easier to understand if you copy it to a blank worksheet.

ShowHow to copy an example

  • Create a blank workbook or worksheet.
  • Select the example in the Help topic.

 Note   Do not select the row or column headers.

Selecting an example from Help

Selecting an example from Help
  • Press CTRL+C.
  • In the worksheet, select cell A1, and press CTRL+V.
  • To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
 
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A B
Data Description
February 15, 2008 Settlement date
May 15, 2008 Maturity date
1,000,000 Investment
1,014,420 Redemption value
2 Actual/360 basis (see above)
Formula Description (Result)
=INTRATE(A2,A3,A4,A5,A6) Discount rate, for the terms of the bond above (0.05768 or 5.77%)

 Note   To view the number as a percentage, select the cell, and then on the Sheet tab, in the Number group, click Percent Style Button image.

 
 
Applies to:
Excel 2007