CodeCogs

Return the interest rate for a fully invested security. <span align="right" style="background-color:99FF99"><strong>Excel: INTRATE</strong></span>

View versions (1)

Interface

#include <codecogs/finance/banking/interestsecurity.h>

using namespace Finance::Banking;

double interestSecurity(int sett, int mat, double investAm, double redemAm, Finance::Banking::YearBasis basis=yb_USA)

Returns the interest rate for a fully invested security. The function works using the following equation:

$rate = \frac{redemption-investment}{investment} * \frac{B}{DIM}$

(1)

where:

rate is the interest rate for the security,
redemption is the amount to be received at maturity,
investment is the amount invested in the security,
B is the number of days in the year, depending on the year

basis,

and DIM is the number of days from settlement to maturity.

Example 1

#include <iostream>
	
#include <codecogs/units/date/date.h>
#include <codecogs/units/date/dateymd.h>
#include <codecogs/finance/banking/interestsecurity.h>
	
int main(int argc, char *argv[])
{
  int settDate=Units::Date::date(1999, 2, 15);
  int maturityDate=Units::Date::date(1999, 5, 15);
	
  double intRate=Finance::Banking::interestSecurity(settDate, maturityDate, 1000000, 1014420, Finance::Banking::yb_Act360);

  int y, m, d;
  Units::Date::dateYMD(settDate, y, m, d);
  printf("settlement=%i/%i/%i\n", y, m, d);
	
  Units::Date::dateYMD(maturityDate, y, m, d);
  printf("maturity=%i/%i/%i\n", y, m, d);
	
  printf("interest rate=%f", intRate);
  return 1;
}

Output:

settlement=1999/2/15
maturity=1999/5/15
interest rate=0.058328

Parameters

sett

The settlement date of the security, expressed as a serial

Blank

Julian date. This is the date after issue when the security is traded to the buyer.

Parameters

mat

The maturity date of the security, expressed as a serial

Blank

Julian date. The maturity date is the date when the security expires.

Parameters

investAm

The amount invested in the security.

redemAm

The amount to be received at maturity.

basis

The day count basis to use. See YearBasis

Returns

The interest rate for the security.

The day count basis is specified using the basis parameter. This basis can be any of the following: yb_USA, yb_EU, yb_Act, yb_Act360 or yb_Act365.