INTRATE function is used to calculate the interest rate for a fully invested security.
=INTRATE(settlement, maturity, investment, redemption, [basis])
settlement – The date at which security after issuance is traded to the buyer.
maturity – The maturity date of the security.
investment – The investment made by the buyer in the security.
redemption – The amount to be received at the maturity date of the security.
[basis] – The optional argument used the type of day count basis to use.
|Basis||Day count basis|
|0 or omitted||US (NASD) 30/360|
Suppose, a security with an investment cost of $1,000 will yield $1,500 on maturity, it has the settlement date of 1/1/2016 and maturity date of 12/31/2016.