Formulas and Functions

INTRATE
The INTRATE function returns the eective annual interest rate for a security that pays
interest only at maturity.
INTRATE(settle, maturity, invest-amount, redemption, days-basis)
 settle: The trade settlement date. settle is a date/time value. The trade settlement
date is usually one or more days after the trade date.
 maturity: The date when the security matures. maturity is a date/time value. It must
be after settle.
 invest-amount: The amount invested in the security. invest-amount is a number
value and must be greater than or equal to 0.
 redemption: The redemption value per $100 of par value. redemption is a number
value that must be greater than 0. redemption is the amount that will be received
per $100 of face value. Often, it is 100, meaning that the security’s redemption value
is equal to its face value.
 days-basis: An optional argument specifying the number of days per month and
days per year used in the calculations.
30/360 (0 or omitted): 30 days in a month, 360 days in a year, using the NASD
method for dates falling on the 31st of a month.
actual/actual (1): Actual days in each month, actual days in each year.
actual/360 (2): Actual days in each month, 360 days in a year.
actual/365 (3): Actual days in each month, 365 days in a year.
30E/360 (4): 30 days in a month, 360 days in a year, using the European method for
dates falling on the 31st of a month (European 30/360).
Example
In this example, the INTRATE function is used to determine the eective annual interest rate of the
hypothetical security described by the values listed. The security pays interest only at maturity. The
function evaluates to approximately 10.85%.
settle maturity invest-amount par days-basis
=INTRATE(B2, C2,
D2, E2, F2)
05/01/2009 06/30/2015 990.02 1651.83 0
12 2 Chapter 6 Financial Functions