INTRATE
Updated: 5 August 2010
Use INTRATE to calculate the interest rate for a fully invested security,
Syntax
SELECT [westclintech].[wct].[INTRATE] (
<@Settlement, datetime,>
,<@Maturity, datetime,>
,<@Investment, float,>
,<@Redemption, float,>
,<@Basis, nvarchar(4000),>)
Arguments
@Settlement
the settlement date of the security. @Settlement is an expression that returns a datetime or smalldatetime value, or a character string in date format.
@Maturity
the maturity date of the security. @Maturity is an expression that returns a datetime or smalldatetime value, or a character string in date format.
@Investment
the amount invested in the security. @Investment is an expression of type float or of a type that can be implicitly converted to float.
@Redemption
the security’s redemption value per 100 face value. @Redemption is an expression of type float or of a type that can be implicitly converted to float.
@Basis
is the type of day count to use. @Basis is an expression of the character string data type category.
|
@Basis
|
Day count basis
|
|
0 or omitted
|
US (NASD) 30/360
|
|
1
|
Actual/Actual
|
|
2
|
Actual/360
|
|
3
|
Actual/365
|
|
4
|
European 30/360
|
Return Type
float
Remarks
· If @Redemption < 0, INTRATE returns an error
· If @Settlement > @Maturity, INTRATE returns an error
· If the @Basis < 0 or the @Basis > 4, INTRATE returns an error
· INTRATE is calculated using the following formula:
INTRATE = (@redemption-@investment)/@investment*b/DSM
Where
b = the number of days in the year
DSM = the number of days between @settlement and @maturity
Example
SELECT wct.INTRATE('2/7/2008'
,'5/8/2008'
,98975
,100000
,0)
Here is the result set
----------------------
0.0409693867637793