INTRATEformula calculates the effective interest rate of a security that pays periodic interest. This formula is commonly used in financial analysis to determine the yield of a bond or other fixed-income security. It takes into account the purchase price, sale price, and holding period of the security, as well as the day count convention used for interest calculations.
- How to use
- Examples of using
INTRATEformula not working?
- Similar formulas to
INTRATE formula with the syntax shown below, it has 4 required parameters and 1 optional parameter:
- buy_date (required):
The date the security was purchased, entered as a valid date value or reference to a cell containing a date.
- sell_date (required):
The date the security was sold, entered as a valid date value or reference to a cell containing a date.
- buy_price (required):
The purchase price of the security, entered as a number or reference to a cell containing a number.
- sell_price (required):
The sale price of the security, entered as a number or reference to a cell containing a number.
- day_count_convention (optional):
An optional parameter that specifies the day count convention used for interest calculations. This parameter can be omitted or entered as a string or reference to a cell containing a string. Valid values include 'actual/actual', 'actual/360', 'actual/365', 'European 30/360', and 'US 30/360'. If this parameter is omitted, the default value is 'actual/actual'.
ExamplesHere are a few example use cases that explain how to use the
INTRATEformula in Google Sheets.
Calculating bond yields
Investors can use
INTRATE to calculate the yield on a bond or other fixed-income security. By entering the purchase and sale dates and prices of the security, as well as the day count convention used for interest calculations, investors can determine the effective interest rate of the security over the holding period.
Analyzing investment returns
Financial analysts can use
INTRATE to analyze the returns of investments in fixed-income securities. By comparing the effective interest rates of different securities over the same holding period, analysts can identify which securities offer the best returns for a given level of risk.
Forecasting future returns
Investors can use
INTRATE to forecast the future returns of fixed-income securities based on historical data. By analyzing the effective interest rates of a security over multiple holding periods, investors can identify trends and make predictions about future returns.
INTRATEnot working? Here are some common mistakes people make when using the
INTRATEGoogle Sheets Formula:
Make sure that the buy date is before the sell date, and that both dates are valid dates in the format recognized by Google Sheets (e.g. mm/dd/yyyy or yyyy-mm-dd).
Make sure that the buy price and sell price are positive numbers, and that they are entered without currency symbols or commas.
Incorrect day-count convention
Make sure that the day-count convention argument is one of the values recognized by the function (0, 1, 2, 3, 4) or omitted. If you are not sure which value to use, check the documentation for the financial instrument you are analyzing.
The following functions are similar to
INTRATE or are often used with it in a formula:
The YIELD function calculates the yield of a security that pays periodic interest. The yield is the annualized percentage rate returned on the bond, assuming the bond is held until maturity. This function is commonly used in finance and investment analysis.
PRICEfunction calculates the price per $100 face value of a security that pays periodic interest. It is commonly used to determine the current value of a bond. The function takes the settlement date, maturity date, annual coupon rate, yield, redemption value, and frequency of coupon payments as input. It returns the price of the security, which is the sum of the present value of the coupon payments and the present value of the redemption value.
COUPNUMformula calculates the number of coupons payable between the settlement date and maturity date of a security. This formula is commonly used in financial analysis to determine the amount of interest income earned on a bond or other fixed income security.
COUPDAYBSfunction calculates the number of days from the beginning of the coupon period to the settlement date for a security that pays periodic interest. It is commonly used in financial calculations to determine the accrued interest between the last coupon payment and the settlement date.
DURATIONfunction calculates the Macauley duration of a security paying periodic interest, such as a US Treasury Bond, based on expected yield. The Macauley duration is a measure of the sensitivity of the price of the security to changes in interest rates. This function is commonly used in finance and investment analysis.
You can learn more about the
INTRATE Google Sheets function on Google Support.