Search Results discount_factor_to_yield_short

Overview

APPS.XTR_RATE_CONVERSION is a Treasury (ETRM) utility package that centralizes the mathematical conversion between the various interest rate quotation conventions used in money market, discount, and fixed-income instruments. Financial instruments in Oracle Treasury are frequently quoted on different bases — discount rate, simple yield, compound yield, or continuously compounded rate — and each convention implies a different relationship between present and future cash flows. This package provides the standardized formulas required to translate a rate quoted under one convention into the equivalent rate under another, ensuring that valuation, accrual, and yield calculations across the Treasury modules remain internally consistent.

The package is classified as OTHER in the ETRM metadata and is referenced by nine other packages, indicating that it functions as a shared low-level calculation service rather than an end-user-facing API. Its header comment identifies it as a shipped source file (xtrrtcvb.pls), and it delegates part of its growth-factor arithmetic to XTR_MM_FORMULAS.

Key Procedures and Functions

The documented interface contains seventeen procedures and functions. The core conversion routines include:

• DISCOUNT_TO_YIELD_RATE — Converts a discount rate (annualized percentage of the future amount) into a yield rate (annualized percentage of the current amount), using the day count between deal start and maturity and the annual basis.
• YIELD_TO_DISCOUNT_RATE — Performs the inverse conversion, deriving the discount rate from a yield rate.
• DAY_COUNT_BASIS_CONV — Re-expresses a rate quoted on one day-count/annual-basis convention onto another.
• SIMPLE_TO_CONTINUOUS_RATE, CONTINUOUS_TO_SIMPLE_RATE — Translate between simple and continuously compounded quotations.
• SIMPLE_TO_COMPOUND_RATE, COMPOUND_TO_SIMPLE_RATE — Translate between simple and compound quotations.
• CONTINUOUS_TO_COMPOUND_RATE, COMPOUND_TO_CONTINUOUS_RATE — Translate between continuous and compound quotations.
• COMPOUND_TO_COMPOUND_RATE — Re-expresses a compound rate for a different compounding frequency or basis.
• RATE_CONVERSION — The general dispatcher that routes a rate through the appropriate conversion pair.
• RATE_CONV_SIMPLE_ANNUALIZED — Produces a simple annualized equivalent for a supplied rate.
• YIELD_TO_DISCOUNT_FACTOR_SHORT, YIELD_TO_DISCOUNT_FACTOR_LONG — Derive short-dated and long-dated discount factors from a yield.
• DISCOUNT_FACTOR_TO_YIELD_SHORT, DISCOUNT_FACTOR_TO_YIELD_LONG — Derive the yield implied by a short-dated or long-dated discount factor; these are the routines most directly associated with the search term discount_factor_to_yield_short.
• DISCOUNT_FACTOR_CONV — Converts a discount factor between conventions.

The SHORT and LONG variants exist because discount-factor mathematics differs between money-market instruments (simple-interest, sub-year) and long-dated instruments, where compounding assumptions apply.

Tables Accessed

The documented metadata lists no tables referenced through APPS synonyms. XTR_RATE_CONVERSION is a pure calculation package: it operates entirely on the scalar numeric parameters passed to it by its callers and holds no persistent state. Any reference data required for a conversion — day-count basis, annual basis, deal dates — is supplied by the calling package, which is expected to have sourced it from the appropriate Treasury setup or transaction tables.

Usage Notes

Because the package exposes only PL/SQL procedures and functions with no concurrent program or form attached, it is invoked programmatically. Typical call sites are Treasury valuation, accrual, and yield-curve packages, the nine packages documented as referencing it, and custom extensions that need to reconcile a rate quoted in one convention with cash flows modeled in another. The DISCOUNT_FACTOR_TO_YIELD_SHORT and DISCOUNT_FACTOR_TO_YIELD_LONG routines are commonly used when a stored or externally supplied discount factor must be reported as an equivalent yield for comparison, limit monitoring, or reporting in Oracle EBS 12.1.1 and 12.2.2.