How To Use: INTRATE Function

The INTRATE function returns the interest rate for a fully invested security. INTRATE is an inbuilt function in Excel. It falls under the category of Financial Functions.

As a worksheet function, you can use this function as a part of the formula in a cell of a worksheet.

You can use this function to calculate the interest rate on an invested security/bonds. The interest rate is often called the discount rate.

Syntax for INTRATE Function

=INTRATE(settlement, maturity, investment, redemption, [basis])

Arguments

Settlement Date: The date after the issue date when the security is traded to the buyer.

Maturity: The date when the security expires.

Investment: Amount invested in the security.

Redemption: The amount at the time of maturity.

Basis: This argument is optional. The basis is the type of day count basis to be used.

Basis can be any of the following:

0 or omitted = US (NASD) 30/360
1 = Actual/actual
2 = Actual/360
3 = Actual/365
4 = European 30/360

Excel truncates the Settlement, maturity and basis arguments to integers.

We have created the infographics for the INTRATE Function. With the help of these infographics, you can easily learn step by step how to use this excel functions.

Furthermore, Excel consists of many inbuilt functions which are helpful in the analytical and statistical study of number.

Simply follow the instructions in the infographics below:

Errors

#VALUE! error occurs when settlement or maturity is not a valid date or supplied argument is non-numeric.

#NUM! error occurs when investment ≤ 0 or if redemption ≤ 0, basis < 0 or if basis > 4 or settlement ≥ maturity.

#NAME? error occurs when Analysis ToolPak add-in is not enabled.

To learn other function like CUMPRINC, ACCRINTM and PRODUCT Functions, please click on the name of the function.

Additionally, you can download other accounting templates like Petty Cash Book, Simple Cash Book and Accounts Payable Excel Templates from here.

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