EquivalentRate_T





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Calculates the Equivalent Rate given a time period and an InterestRate() object.

You also indicate that the result will take on a different compounding and a different Frequency from the original rate input.

This is useful if you do not know the 2 dates which encompasses the Equivalent Rate, but you do know the TimePeriod (year fraction).

Please refer to the large number of enumeration functions present within the CapeTools Enums category of functions.

The CapeTools Enums category of functions return correct string codes that can be passed to parameters taking fixed string values defined by the library (ie - DayCount codes, frequency codes, currency codes, compounding codes, business day convention codes etc...).

You can thus execute these enumeration functions which return the proper code, instead of trying to remember the string code needed or making spelling mistakes which can be difficult to debug.



Note: Within Excel, the function is named - CT.UTIL.EquivalentRate_T




High level graphic of EquivalentRate_T() function with parameters. Blue square node is the actual function with the parameters ordered.



Parameter Description


  1. interestRateObj parameter

    Key to an already constructed InterestRate() object.
  2. TimePeriod parameter

    The time period in which the discountFactor should be calculated (0.5 = half a year).
  3. compoundTo parameter

    The compounding you wish to convert to. (Simple (1+r*t), 'Compounded' (1+r/N)^(t*N), where N is the number of coupons per year, 'Continuous' e^{r*t}, SimpleThenCompounded (Simple up to the first period then Compounded).
  4. FreqTo parameter

    The Frequency you wish to convert to. (


Extended information

Function Syntax

VB Syntax


Double CTUtils.EquivalentRate_T( _
String interestRateObj, _
Double TimePeriod, _
COMPEnum compoundTo, _
FreqEnum FreqTo)


Excel Spreadsheet Syntax


=CT.UTIL.EquivalentRate_T(
Excel String Cell interestRateObj,
Excel Numeric Cell TimePeriod,
Excel String Cell compoundTo,
Excel String Cell FreqTo)


C++ Syntax


static double EquivalentRate_T(
std::string interestRateObj,
double TimePeriod,
COMPEnum compoundTo,
FreqEnum FreqTo);


DotNET Syntax


System.Double CTUtilsSA.EquivalentRate_T(
System.String interestRateObj,
System.Double TimePeriod,
CTIEnums.COMPEnum compoundTo,
CTIEnums.FreqEnum FreqTo);

Parameter data types

ArgNameArgTypeIsKey
interestRateObjStringTRUE
TimePeriodDoubleFALSE
compoundToCOMPEnumFALSE
FreqToFreqEnumFALSE


Example Inputs

The first column represents the name of the parameters. The second column specifies whether the parameters are optional or not. Finally the last column provides some sample input data.
Function call input string-keys are always in the format : "NAME.EXTTAG.TICKER" The "EXTTAG.TICKER" part is determined from the output of other, capetools, object creation functions.


ArgNameIsOptional (Excel only)Example
interestRateObjFALSEinterestRateObjNAME.EXTTAG.TICKER (from a function call)
TimePeriodFALSE3.5
compoundToFALSESimple
FreqToFALSEA


Example function usage


The C# example below contains all the sub-function calls leading up to this function call. As a result, the example can contain a lot of code.

The VB.NET, J#, C++.NET, Java, Excel VBA, Visual Basic 6 (via COM) and C++ examples below contain function code stubs for the calls leading up to this function call. However, the function call for this function is displayed.
You can easily reproduce the stub functions code from the C# example.


If you are accessing this functrion via the MiniXL libraries, this function is present within the CT.QL.Utils20 MiniXL Excel Addin.

Within our Excel Example Addin Generator, we have used the following QuantTools sub-functions in order to prepare the arguments needed to call the EquivalentRate_T() function. If you are executing this function via the MiniXL libraries, the module addin name, (in brackets, to the right of the sub-functions listed below), indicates the MiniXL library in which the sub-function is held. You will need to load this library into your Excel session (along with any other libraries that the sub-function call within the addin requires (ie - CT.QT.Utils20 addin in almost all cases) in order for the example to compute successfully.

These are the financial QuantTools sub-function calls that are used within the examples :





The objects generated by these sub-functions are inter-connected in the following way :




The following four examples demostrate calling this function within a Microsoft .NET environment

The following four examples demostrate calling this function within a non .NET environment

The following is a sample output from executing the EquivalentRate_T() function call


0.0542727853027049

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