BondFairValueCalculator::getBondFairValue() - Code Metrics - uruba/FinanCalc - Measure and Improve Code Quality continuously with Scrutinizer

BondFairValueCalculator::getBondFairValue() A
last analyzed 2017-05-01 14:00 UTC

↳ Parent: BondFairValueCalculator

Complexity

Conditions	1
Paths	1

Size

Total Lines	62
Code Lines	35

Duplication

Lines	0
Ratio	0 %

Importance

Changes

Metric	Value
c	0
b	0
f	0
dl	0
loc	62
rs	9.4743
cc	1
eloc	35
nc	1
nop	0

How to fix Long Method

<?php

namespace FinanCalc\Calculators {

    use FinanCalc\Interfaces\Calculator\BondCalculatorAbstract;
    use FinanCalc\Utils\Lambdas;
    use FinanCalc\Utils\MathFuncs;

    /**
     * Class BondFairValueCalculator
     * @package FinanCalc\Calculators
     */
    class BondFairValueCalculator extends BondCalculatorAbstract
    {

        // valuation interest rate of the bond = 'i'
        protected $bondVIR;

        // INHERITED MEMBERS
        // face value of the bond = 'F'
        // $bondFaceValue;

        // coupon rate of the bond per annum = 'c'
        // $bondAnnualCouponRate;

        // number of years to the maturity of the bond
        // $bondYearsToMaturity;

        // frequency of bond payments (expressed in a divisor of 12 months ~ 1 year)
        // e.g.: divisor 2 means semi-annual payments
        // $bondPaymentFrequency;

        // props returned by the getResultAsArray method by default
        protected $propResultArray = [
            "bondFaceValue",
            "bondAnnualCouponRate",
            "bondVIR",
            "bondYearsToMaturity",
            "bondPaymentFrequency",
            "bondFairValue"
        ];

        /**
         * @param $bondFaceValue
         * @param $bondAnnualCouponRate
         * @param $bondVIR
         * @param $bondYearsToMaturity
         * @param $bondPaymentFrequency
         */
        public function __construct(
            $bondFaceValue,
            $bondAnnualCouponRate,
            $bondVIR,
            $bondYearsToMaturity,
            $bondPaymentFrequency = 1
        ) {
            $this->setBondFaceValue($bondFaceValue);
            $this->setBondAnnualCouponRate($bondAnnualCouponRate);
            $this->setBondVIR($bondVIR);
            $this->setBondYearsToMaturity($bondYearsToMaturity);
            $this->setBondPaymentFrequency($bondPaymentFrequency);
        }

        /**
         * @param $bondVIR
         */
        public function setBondVIR($bondVIR)
        {
            $this->setProperty("bondVIR", $bondVIR, Lambdas::checkIfPositive());
        }

        /**
         * @return mixed
         */
        public function getBondVIR()
        {
            return $this->bondVIR;
        }

        /**
         * @return string
         */
        public function getBondFairValue()
        {
            // we need to get the coupon rate per payment period = c/payment frequency
            $couponRateForPeriod = MathFuncs::div(
                $this->bondAnnualCouponRate,
                $this->bondPaymentFrequency
            );

            // similarly, we need to calculate the VIR per payment period = i/payment frequency
            $VIRForPeriod = MathFuncs::div(
                $this->bondVIR,
                $this->bondPaymentFrequency
            );

            // we also save the bond's number of payments to an auxiliary variable
            $bondNoOfPayments = $this->getBondNoOfPayments();

            // next, we also need the present value of the unit annuity pertaining to the bond, in arrears
            $PVofUnitBondAnnuity =
                MathFuncs::div(
                    MathFuncs::sub(
                        1,
                        Mathfuncs::pow(
                            MathFuncs::div(
                                1,
                                MathFuncs::add(
                                    1,
                                    $VIRForPeriod
                                )
                            ),
                            $bondNoOfPayments
                        )
                    ),
                    $VIRForPeriod
                );

            // now we can use the formula to calculate the real value of the bond (i.e., the present value of its payments)
            // PV = F*[c*PVofUnitBondAnnuity+1/((1+i)^n)]


            $fairValue =
                MathFuncs::mul(
                    $this->bondFaceValue,
                    MathFuncs::add(
                        MathFuncs::mul(
                            $couponRateForPeriod,
                            $PVofUnitBondAnnuity
                        ),
                        MathFuncs::div(
                            1,
                            MathFuncs::pow(
                                MathFuncs::add(
                                    1,
                                    $VIRForPeriod
                                ),
                                $bondNoOfPayments
                            )
                        )
                    )
                );

            return $fairValue;
        }
    }
}


1			<?php
2
3			namespace FinanCalc\Calculators {
4
5			use FinanCalc\Interfaces\Calculator\BondCalculatorAbstract;
6			use FinanCalc\Utils\Lambdas;
7			use FinanCalc\Utils\MathFuncs;
8
9			/**
10			* Class BondFairValueCalculator
11			* @package FinanCalc\Calculators
12			*/
13			class BondFairValueCalculator extends BondCalculatorAbstract
14			{
15
16			// valuation interest rate of the bond = 'i'
17			protected $bondVIR;
18
19			// INHERITED MEMBERS
20			// face value of the bond = 'F'
21			// $bondFaceValue;
22
23			// coupon rate of the bond per annum = 'c'
24			// $bondAnnualCouponRate;
25
26			// number of years to the maturity of the bond
27			// $bondYearsToMaturity;
28
29			// frequency of bond payments (expressed in a divisor of 12 months ~ 1 year)
30			// e.g.: divisor 2 means semi-annual payments
31			// $bondPaymentFrequency;
32
33			// props returned by the getResultAsArray method by default
34			protected $propResultArray = [
35			"bondFaceValue",
36			"bondAnnualCouponRate",
37			"bondVIR",
38			"bondYearsToMaturity",
39			"bondPaymentFrequency",
40			"bondFairValue"
41			];
42
43			/**
44			* @param $bondFaceValue
45			* @param $bondAnnualCouponRate
46			* @param $bondVIR
47			* @param $bondYearsToMaturity
48			* @param $bondPaymentFrequency
49			*/
50			public function __construct(
51			$bondFaceValue,
52			$bondAnnualCouponRate,
53			$bondVIR,
54			$bondYearsToMaturity,
55			$bondPaymentFrequency = 1
56			) {
57			$this->setBondFaceValue($bondFaceValue);
58			$this->setBondAnnualCouponRate($bondAnnualCouponRate);
59			$this->setBondVIR($bondVIR);
60			$this->setBondYearsToMaturity($bondYearsToMaturity);
61			$this->setBondPaymentFrequency($bondPaymentFrequency);
62			}
63
64			/**
65			* @param $bondVIR
66			*/
67			public function setBondVIR($bondVIR)
68			{
69			$this->setProperty("bondVIR", $bondVIR, Lambdas::checkIfPositive());
70			}
71
72			/**
73			* @return mixed
74			*/
75			public function getBondVIR()
76			{
77			return $this->bondVIR;
78			}
79
80			/**
81			* @return string
82			*/
83			public function getBondFairValue()
84			{
85			// we need to get the coupon rate per payment period = c/payment frequency
86			$couponRateForPeriod = MathFuncs::div(
87			$this->bondAnnualCouponRate,
88			$this->bondPaymentFrequency
89			);
90
91			// similarly, we need to calculate the VIR per payment period = i/payment frequency
92			$VIRForPeriod = MathFuncs::div(
93			$this->bondVIR,
94			$this->bondPaymentFrequency
95			);
96
97			// we also save the bond's number of payments to an auxiliary variable
98			$bondNoOfPayments = $this->getBondNoOfPayments();
99
100			// next, we also need the present value of the unit annuity pertaining to the bond, in arrears
101			$PVofUnitBondAnnuity =
102			MathFuncs::div(
103			MathFuncs::sub(
104			1,
105			Mathfuncs::pow(
106			MathFuncs::div(
107			1,
108			MathFuncs::add(
109			1,
110			$VIRForPeriod
111			)
112			),
113			$bondNoOfPayments
114			)
115			),
116			$VIRForPeriod
117			);
118
119			// now we can use the formula to calculate the real value of the bond (i.e., the present value of its payments)
120			// PV = F[cPVofUnitBondAnnuity+1/((1+i)^n)]
			0 ignored issues – show Unused Code Comprehensibility introduced 2016-02-26 22:20 UTC by Report Bug Copy Issue Report `38%` of this comment could be valid code. Did you maybe forget this after debugging? Sometimes obsolete code just ends up commented out instead of removed. In this case it is better to remove the code once you have checked you do not need it. The code might also have been commented out for debugging purposes. In this case it is vital that someone uncomments it again or your project may behave in very unexpected ways in production. This check looks for comments that seem to be mostly valid code and reports them. Loading history...
121
122			$fairValue =
123			MathFuncs::mul(
124			$this->bondFaceValue,
125			MathFuncs::add(
126			MathFuncs::mul(
127			$couponRateForPeriod,
128			$PVofUnitBondAnnuity
129			),
130			MathFuncs::div(
131			1,
132			MathFuncs::pow(
133			MathFuncs::add(
134			1,
135			$VIRForPeriod
136			),
137			$bondNoOfPayments
138			)
139			)
140			)
141			);
142
143			return $fairValue;
144			}
145			}
146			}
147

uruba / FinanCalc

BondFairValueCalculator::getBondFairValue() A last analyzed 2017-05-01 14:00 UTC

Complexity

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How to fix Long Method

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BondFairValueCalculator::getBondFairValue() A
last analyzed 2017-05-01 14:00 UTC