Interest Rate
– INTRATE
The simple interest rate can be calculated using Excel’s INTRATE function. See the
table below for a detailed list of the exercises and problems in the text that can be
solved using this function.
This function is included in the Analysis ToolPak.
Syntax
=INTRATE(settlement,maturity,investment,redemption,basis)
Issue – issue date of the security
Settlement – the date after the issue date when the security is traded to the
buyer
Maturity – maturity date of the security
Investment – amount of investment in the security
Redemption – value of the security at redemption
Basis – day count basis of the security. Defaults to 0 if omitted.
0 = 30/360 (US NASD)
1 = actual/actual
2 = actual/360
3 = actual/365
4 = European 30/365
General Example
The following general example shows how the INTRATE function can be used. Notice
that the INTRATE function appears in the formula bar.
1
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View Full DocumentUsing the INTRATE Function in a Spreadsheet
To calculate the simple interest rate on an investment, create a spreadsheet by following
Steps 1 to 7. Or, to use the INTRATE function right away, open the INTRATE
worksheet in the Excel Functions Templates workbook. All fields have been formatted
for you (currency, percentage, number of decimals displayed).
Step 1
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 Fall '05
 TonyCirusolo
 Math, Interest, Settlement field, intRate, intrate function

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