The risk-free interest rate section provides data containing the rate on US treasury
slips for various maturities. Based on specified input values, an appropriate value
will be returned.
To calculate Risk-Free Rate:
1. Select Date Type: Daily or Monthly or Custom:
a. Daily: Enter date in pop-up box (cannot be a future date).
b. Monthly: Enter month-end date in pop-up box (cannot be a future
month).
c. Custom: Enter From and To dates in pop-up box (cannot be future
dates; To date >= From date).
2. Click View Rates button. This populates a table per the selection criteria in
Step 1. From this table the user may save any combination of rates by
clicking on the appropriate + sign in the Save to Selection column.
3. Calculate the zero-coupon bond maturity period.
a. Select Calculate the zero-coupon bond maturity period
(from drop-down
selections)
or Custom maturity in years
b. Select Interpolation Method:
i. Exact Match
or
ii. Round to closest 6 month interval
c. Select Spot Rate or Continuous Compound Rate.
d. Click the Calculate button. The risk-free rate is calculated and displayed
to the right of the Calculate button.
i. To save the calculation:
- Click the Save to Selection button. The risk-free rate
calculation is removed from the page and ‘moved’ to the Risk Free Rate Parameters section at the bottom of the page.
Note: This information can also be seen on the Your Selection
page.
To remove saved calculations:
- Click the red Remove ‘X’. However, be aware that there is no
confirmation
before it is removed.
To create an audit report:
- Click the Audit Report button.