Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem #3: In a previous assignment, Excel wrote a Macro for you by recording your actions. The language the Macro was written in was

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Problem #3: In a previous assignment, Excel wrote a Macro for you by recording your actions. The language the Macro was written in was Visual Basic, or VBA. You can use VBA to program functions or subroutines for yourself. In this exercise you are to write an interpolation function in VBA. You will need to have the "Developer" tab appearing on your ribbon. If it's not there, find "Options" under File or Home, click on "Customize Ribbon" and activate "Developer". Make a yield curve by interpolating and extrapolating from four given terms and yields. Create a table of values on a spreadsheet as shown below, but with the following terms and yields: Term Yield 1 4.00% 1.5 6.50% 3 3.50% 5 7.50% 123 A B C D 4 Term Yield 5 1 69 1.5 7 3 8 5 5 9 Create a straight-line interpolation function in VBA called, FInterp(x, xarray, yarray), that takes as input an array of x values, an array of their matching y values, and the x value for which you want it to interpolate/extrapolate a y value. Instructions for doing this are here. Create a new table with column headings Term Interpolated Vlookup true Vlookup false Create a straight-line interpolation function in VBA called, FInterp(x, xarray, yarray), that takes as input an array of x values, an array of their matching y values, and the x value for which you want it to interpolate/extrapolate a y value. Instructions for doing this are here. Create a new table with column headings Term Interpolated Vlookup true Vlookup false Under "Term", create a column of terms running from 0 to 6.0 by increments of 0.2. In the "Interpolated" column, for each term, call your FInterp to interpolate/extrapolate the yield for that term (If your sheet appears like the one above, the xarray input for the interpolator is $B$5:$B$8, while the yarray is $C$5:$C$8). For comparison, also find what the "vlookup" function produces. In the column beside your "Interpolated" column, use vlookup on the table $B$5:$C$8 for each term, with the optional 4th argument, "Range_lookup", set to "TRUE" to have vlookup provide the closest match. In the last column, again use vlookup, but with "Range_lookup" set to "FALSE" so that it returns #N/A if there is no exact match. (note: with vlookup set to false, vlookup may return #N/A even for terms of 3 and 5. The failure to find a match is due to unseen numerical errors somewhere around the 16th decimal place of the value in the "Term" column. Your solution will be accepted even with the #N/As). (a) What value does your interpolator return for a term of 2.0? (b) What value does your interpolator return for a term of 0.6? Problem #3(a): Problem #3(b): Answer as a real number correct to 4 decimals Answer as a real number correct to 4 decimals From the Developer tab, click on "Visual Basic". This takes you to a higher-level project view of your workbook, the column at left shows all your work sheets. You will need to right click on your "Microsoft Excel Objects" in order to "Insert" a "Module" where you can code your function. Begin your function by typing "function FInterp(x, xarray, yarray)" When you hit enter, Excel should provide the "End Function" line that ends the code. You will need to determine the length of the input arrays. Let "n = xarray.Rows.Count". At this point, your code should include several error checking requirements. These are not required for this lab. But a proper coding of this function should check for some things like: - Is n at least 2? - Does yarray also have a row count of n? - Are the values in xarray in increasing order down a column? For this lab, just don't send your function any erroneous inputs. The idea is to find the appropriate index i in order to find the y value on the line between the points: (xarray(i), yarray(i)), and (xarray(i+1), yarray(i+1)) To that end, i will be some integer between 1 and n-1. You will start with i=1, and while i < n-1 and while xarray(i+1) is not yet larger than your x, increase i. So code "i=1". Then, to create an appropriate "While" loop, begin with While (i So code "i=1". Then, to create an appropriate "While" loop, begin with While (i

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial statements

Authors: Stephen Barrad

5th Edition

978-007802531, 9780324186383, 032418638X

More Books

Students also viewed these Finance questions