Class: Finance::Rate

Inherits:
Object
  • Object
show all
Includes:
Comparable
Defined in:
lib/finance/rates.rb

Overview

the Rate class provides an interface for working with interest rates.

Constant Summary collapse

TYPES =

Accepted rate types

{ :apr       => "effective",
  :apy       => "effective",
  :effective => "effective",
  :nominal   => "nominal" 
}

Instance Attribute Summary collapse

Class Method Summary collapse

Instance Method Summary collapse

Constructor Details

#initialize(rate, type, opts = {}) ⇒ Rate

create a new Rate instance

Examples:

create a 3.5% APR rate

Rate.new(0.035, :apr) #=> Rate(0.035, :apr)

Parameters:

  • rate (Numeric) —

    the decimal value of the interest rate

  • type (Symbol) —

    a valid rate type

  • opts (optional, Hash) (defaults to: {}) —

    set optional attributes

Options Hash (opts):

  • :duration (String) —

    a time interval for which the rate is valid

  • :compounds (String) — default: :monthly —

    the number of compounding periods per year

See Also:



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# File 'lib/finance/rates.rb', line 90

def initialize(rate, type, opts={})
  # Default monthly compounding.
  opts = { :compounds => :monthly }.merge opts

  # Set optional attributes..
  opts.each do |key, value|
    send("#{key}=", value)
  end

  # Set the rate in the proper way, based on the value of type.
  begin
    send("#{TYPES.fetch(type)}=", rate.to_d)
  rescue KeyError
    raise ArgumentError, "type must be one of #{TYPES.keys.join(', ')}", caller
  end
end

Instance Attribute Details

#duration ⇒ Integer

Returns the duration for which the rate is valid, in months.

Returns:

  • (Integer) —

    the duration for which the rate is valid, in months



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# File 'lib/finance/rates.rb', line 19

def duration
  @duration
end

#effective ⇒ DecNum

Returns the effective interest rate.

Returns:

  • (DecNum) —

    the effective interest rate



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# File 'lib/finance/rates.rb', line 22

def effective
  @effective
end

#nominal ⇒ DecNum

Returns the nominal interest rate.

Returns:

  • (DecNum) —

    the nominal interest rate



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# File 'lib/finance/rates.rb', line 25

def nominal
  @nominal
end

Class Method Details

.to_effective(rate, periods) ⇒ DecNum

convert a nominal interest rate to an effective interest rate

Examples:

Rate.to_effective(0.05, 4) #=> DecNum('0.05095')

Parameters:

  • rate (Numeric) —

    the nominal interest rate

  • periods (Numeric) —

    the number of compounding periods per year

Returns:

  • (DecNum) —

    the effective interest rate



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# File 'lib/finance/rates.rb', line 137

def Rate.to_effective(rate, periods)
  rate, periods = rate.to_d, periods.to_d

  if periods.infinite?
    rate.exp - 1
  else
    (1 + rate / periods) ** periods - 1
  end
end

.to_nominal(rate, periods) ⇒ DecNum

convert an effective interest rate to a nominal interest rate

Examples:

Rate.to_nominal(0.06, 365) #=> DecNum('0.05827')

Parameters:

  • rate (Numeric) —

    the effective interest rate

  • periods (Numeric) —

    the number of compounding periods per year

Returns:

  • (DecNum) —

    the nominal interest rate

See Also:



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# File 'lib/finance/rates.rb', line 155

def Rate.to_nominal(rate, periods)
  rate, periods = rate.to_d, periods.to_d

  if periods.infinite?
    (rate + 1).log
  else
    periods * ((1 + rate) ** (1 / periods) - 1)
  end
end

Instance Method Details

#<=>(rate) ⇒ Numeric

compare two Rates, using the effective rate

Examples:

Which is better, a nominal rate of 15% compounded monthly, or 15.5% compounded semiannually?

r1 = Rate.new(0.15, :nominal) #=> Rate.new(0.160755, :apr)
r2 = Rate.new(0.155, :nominal, :compounds => :semiannually) #=> Rate.new(0.161006, :apr)
r1 <=> r2 #=> -1

Parameters:

  • rate (Rate) —

    the comparison Rate

Returns:



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# File 'lib/finance/rates.rb', line 35

def <=>(rate)
  @effective <=> rate.effective
end

#apr ⇒ DecNum

Returns the effective interest rate.

Returns:

  • (DecNum) —

    the effective interest rate



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# File 'lib/finance/rates.rb', line 41

def apr
  self.effective
end

#apy ⇒ DecNum

Returns the effective interest rate.

Returns:

  • (DecNum) —

    the effective interest rate



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# File 'lib/finance/rates.rb', line 47

def apy
  self.effective
end

#inspect ⇒ Object 



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# File 'lib/finance/rates.rb', line 107

def inspect
  "Rate.new(#{self.apr.round(6)}, :apr)"
end

#monthly ⇒ DecNum

Returns the monthly effective interest rate.

Examples:

rate = Rate.new(0.15, :nominal)
rate.apr.round(6) #=> DecNum('0.160755')
rate.monthly.round(6) #=> DecNum('0.013396')

Returns:

  • (DecNum) —

    the monthly effective interest rate



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# File 'lib/finance/rates.rb', line 117

def monthly
  (self.effective / 12).round(15)
end