finance 0.2.0 → 1.0.0

data/test/test_cashflows.rb

@@ -1,14 +1,16 @@
-require 'cashflows'
-require 'test/unit'
+require_relative '../lib/finance/cashflows.rb'
 
-class TestIRR < Test::Unit::TestCase
-  def test_simple
-    assert_in_delta(0.143, [-4000,1200,1410,1875,1050].irr, 0.001)
-  end
-end
+require 'flt/d'
+require 'minitest/unit'
+require 'shoulda'
 
-class TestNPV < Test::Unit::TestCase
-  def test_simple
-    assert_in_delta(49.211, [-100.0, 60, 60, 60].npv(0.1), 0.001)
+class TestCashflows < Test::Unit::TestCase
+  context "an array of cashflows" do
+    should "have an Internal Rate of Return" do
+      assert_equal D("0.143"), [-4000,1200,1410,1875,1050].irr.round(3)
+    end
+    should "have a Net Present Value" do
+      assert_equal D("49.211"), [-100.0, 60, 60, 60].npv(0.1).round(3)
+    end
   end
 end

data/test/test_interval.rb

@@ -0,0 +1,18 @@
+require_relative '../lib/finance/interval.rb'
+
+require 'minitest/unit'
+require 'shoulda'
+
+class TestInterval < Test::Unit::TestCase
+  context "a time interval" do
+    context "can be created from an integer" do
+      should "convert an integer into months" do
+        assert_equal 360, 360.months
+      end
+
+      should "convert an integer into years" do
+        assert_equal 360, 30.years
+      end
+    end
+  end
+end

data/test/test_rates.rb

@@ -1,31 +1,78 @@
-require 'rubygems'
-require 'finance'
+require_relative '../lib/finance/rates.rb'
+include Finance
+
+require 'flt'
 require 'flt/d'
-require 'test/unit'
+require 'minitest/unit'
+require 'shoulda'
 
 class TestRates < Test::Unit::TestCase
-  def test_apr
-    rate = Rate.new(0.0375, :apr)
-    assert_equal D('0.03687'), rate.nominal.round(5)
-  end
+  context "an interest rate" do
+    context "can compound with different periods" do
+      should "compound monthly by default" do
+        rate = Rate.new(0.15, :nominal)
+        assert_equal D('0.16075'), rate.effective.round(5)
+      end
 
-  def test_duration
-    rate = Rate.new(0.0375, :effective, :duration => 30.years)
-    assert_equal 360, rate.duration
-  end
+      should "compound annually" do
+        rate = Rate.new(0.15, :nominal, :compounds => :annually)
+        assert_equal D('0.15'), rate.effective
+      end
+
+      should "compound continuously" do
+        rate = Rate.new(0.15, :nominal, :compounds => :continuously)
+        assert_equal D('0.16183'), rate.effective.round(5)
+      end
+
+      should "compound daily" do
+        rate = Rate.new(0.15, :nominal, :compounds => :daily)
+        assert_equal D('0.16180'), rate.effective.round(5)
+      end
+
+      should "compound quarterly" do
+        rate = Rate.new(0.15, :nominal, :compounds => :quarterly)
+        assert_equal D('0.15865'), rate.effective.round(5)
+      end
+
+      should "compound semiannually" do
+        rate = Rate.new(0.15, :nominal, :compounds => :semiannually)
+        assert_equal D('0.15563'), rate.effective.round(5)
+      end
+
+      should "accept a numerical value as the compounding frequency per year" do
+        rate = Rate.new(0.15, :nominal, :compounds => 7)
+        assert_equal D('0.15999'), rate.effective.round(5)
+      end
+
+      should "raise an exception if an unknown string is given" do
+        assert_raises(ArgumentError){ Rate.new(0.15, :nominal, :compounds => :quickly) }
+      end
+    end
+
+    should "accept a duration if given" do
+      rate = Rate.new(0.0375, :effective, :duration => 360)
+      assert_equal 360, rate.duration
+    end
+
+    should "be comparable to other interest rates" do
+      r1 = Rate.new(0.15, :nominal)
+      r2 = Rate.new(0.16, :nominal)
+      assert_equal( 1, r2 <=> r1)
+      assert_equal(-1, r1 <=> r2)
+    end
     
-  def test_effective
-    rate = Rate.new(0.03687, :nominal)
-    assert_equal D('0.0375'), rate.effective.round(4)
-  end
+    should "convert to a monthly value" do
+      rate = Rate.new(0.0375, :effective)
+      assert_equal D('0.003125'), rate.monthly
+    end
 
-  def test_monthly
-    rate = Rate.new(0.0375, :effective)
-    assert_equal D('0.003125'), rate.monthly
-  end
+    should "convert effective interest rates to nominal" do
+      assert_equal D('0.03687'), Rate.to_nominal(D('0.0375'), 12).round(5)
+      assert_equal D('0.03681'), Rate.to_nominal(D('0.0375'), Flt::DecNum.infinity).round(5)
+    end
 
-  def test_nominal
-    rate = Rate.new(0.0375, :effective)
-    assert_equal D('0.03687'), rate.nominal.round(5)
+    should "raise an exception if an unknown value is given for :type" do
+      assert_raises(ArgumentError){ Rate.new(0.0375, :foo) }
+    end
   end
 end

metadata

@@ -4,10 +4,10 @@ version: !ruby/object:Gem::Version
   hash: 23
   prerelease: 
   segments: 
+  - 1
   - 0
-  - 2
   - 0
-  version: 0.2.0
+  version: 1.0.0
 platform: ruby
 authors: 
 - Bill Kranec
@@ -15,7 +15,7 @@ autorequire:
 bindir: bin
 cert_chain: []
 
-date: 2011-06-28 00:00:00 Z
+date: 2011-07-20 00:00:00 Z
 dependencies: 
 - !ruby/object:Gem::Dependency 
   name: flt
@@ -41,19 +41,25 @@ extensions: []
 
 extra_rdoc_files: 
 - README
+- COPYING
+- COPYING.LESSER
+- HISTORY
 files: 
 - README
 - COPYING
 - COPYING.LESSER
-- lib/amortization.rb
-- lib/cashflows.rb
+- HISTORY
+- lib/finance/amortization.rb
+- lib/finance/cashflows.rb
+- lib/finance/decimal.rb
+- lib/finance/interval.rb
+- lib/finance/rates.rb
+- lib/finance/transaction.rb
 - lib/finance.rb
-- lib/rates.rb
-- lib/timespan.rb
 - test/test_amortization.rb
 - test/test_cashflows.rb
+- test/test_interval.rb
 - test/test_rates.rb
-- test/test_timespan.rb
 homepage: https://rubygems.org/gems/finance
 licenses: []
 
@@ -67,10 +73,11 @@ required_ruby_version: !ruby/object:Gem::Requirement
   requirements: 
   - - ">="
     - !ruby/object:Gem::Version 
-      hash: 3
+      hash: 29
       segments: 
-      - 0
-      version: "0"
+      - 1
+      - 9
+      version: "1.9"
 required_rubygems_version: !ruby/object:Gem::Requirement 
   none: false
   requirements: 
@@ -86,6 +93,6 @@ rubyforge_project:
 rubygems_version: 1.8.5
 signing_key: 
 specification_version: 3
-summary: a library for financial calculations in Ruby.
+summary: a library for financial modelling in Ruby.
 test_files: []
 

data/lib/amortization.rb

@@ -1,160 +0,0 @@
-require 'rubygems'
-require 'cashflows'
-require 'flt'
-
-class Period
-  attr_accessor :payment
-  attr_accessor :principal
-  attr_accessor :rate
-
-  def additional_payment
-    @payment-@original_payment
-  end
-
-  # Return the remaining balance at the end of the period.
-  def balance
-    @principal + @payment + self.interest
-  end
-
-  def initialize(principal, rate, payment)
-    @principal = principal
-    @rate = rate
-    @payment = payment
-    @original_payment = payment
-  end
-
-  # Return the interest charged for the period.
-  def interest
-    (@principal * @rate).round(2)
-  end
-
-  def modify_payment(&modifier)
-    value = modifier.call(self)
-    
-    # There's a chance that the block does not return a decimal.
-    unless value.class == Flt::DecNum
-      value = Flt::DecNum value.to_s
-    end
-
-    self.payment = value
-  end
-
-  def payment=(value)
-    total = @principal + self.interest
-    if value.abs > total
-      @payment = -total
-    else
-      @payment = value
-    end
-  end
-end
-
-class Amortization
-  attr_accessor :balance
-  attr_accessor :block
-  attr_accessor :rate_duration
-  attr_accessor :payment
-  attr_accessor :periods
-  attr_accessor :principal
-  attr_accessor :rates
-
-  def ==(amortization)
-    self.principal == amortization.principal and self.rates == amortization.rates and self.payments == amortization.payments
-  end
-
-  def additional_payments
-    @periods.collect{ |period| period.additional_payment }
-  end
-
-  def amortize(rate)
-    # For the purposes of calculating a payment, the relevant time
-    # period is the remaining number of periods in the loan, _not_ the
-    # duration of the rate itself.
-    duration = @rate_duration - @periods.length
-    payment = Amortization.payment @balance, rate.monthly, duration
-
-    rate.duration.times do
-      # Do this first in case the balance is zero already.
-      if @balance.zero?
-        break
-      end
-
-      period = Period.new(@balance, rate.monthly, payment)
-
-      if @block
-        period.modify_payment(&@block)
-      end
-      
-      @periods << period
-      @balance = period.balance
-    end
-
-    if @rates.length == 1
-      @payment = self.payments[0]
-    else
-      @payment = nil
-    end
-  end
-
-  # Compute the amortization of the principal.
-  def compute
-    @balance = @principal
-    @periods = []
-
-    @rates.each do |rate|
-      amortize(rate)
-    end
-
-    # Add any remaining balance due to rounding error to the last payment.
-    unless @balance.zero?
-      @periods[-1].payment -= @balance
-      @balance = 0
-    end
-  end
-
-  def duration
-    @periods.length
-  end
-
-  def initialize(principal, *rates, &block)
-    @principal = principal
-    @rates     = rates
-    @rate_duration  = (rates.collect { |r| r.duration }).sum
-    @block     = block
-
-    compute
-  end
-
-  def inspect
-    "Amortization.new(#{@principal}"
-  end
-
-  # Return an Array with the amount of interest charged in each period.
-  def interest
-    @periods.collect { |period| period.interest }
-  end
-
-  # Return the periodic payment due on a loan, based on the
-  #{http://en.wikipedia.org/wiki/Amortization_calculator amortization process}.
-  def Amortization.payment(balance, rate, periods)
-    -(balance * (rate + (rate / ((1 + rate) ** periods - 1)))).round(2)
-  end
-
-  # Return an array with the payment amount for each period.
-  def payments
-    @periods.collect { |period| period.payment }
-  end
-
-  # "Pretty print" a text amortization table.
-  def pprint
-    @periods.each_with_index do |p, i|
-      puts "%03d  $%9s  %8s  $%7s  $%7s  $%9s" % [i, p.principal, p.rate, p.payment, p.interest, p.balance]
-    end
-  end
-end
-
-class Numeric
-  def amortize(rate, &block)
-    amortization = Amortization.new(self, rate, &block)
-  end
-end

data/lib/cashflows.rb

@@ -1,33 +0,0 @@
-module Cashflow
-  # Return the {http://en.wikipedia.org/wiki/Internal_rate_of_return
-  # internal rate of return} for a given sequence of cashflows.
-  def irr(iterations=100)
-    rate = 1.0
-    investment = self[0]
-    for i in 1..iterations+1
-      rate = rate * (1 - self.npv(rate) / investment)
-    end
-    rate
-  end
-
-  # Return the {http://en.wikipedia.org/wiki/Net_present_value net present value} of a sequence of cash flows given
-  # the discount rate _rate_.
-  def npv(rate)
-    total = 0.0
-    self.each_with_index do |cashflow, index|
-      total = total + cashflow / (1+rate) ** index
-    end
-    total
-  end
-
-  def sum
-    self.inject(:+)
-  end
-
-  def xirr
-  end
-end
-
-class Array
-  include Cashflow
-end

data/lib/rates.rb

@@ -1,93 +0,0 @@
-require 'rubygems'
-require 'flt'
-
-class Rate
-  attr_accessor :duration
-  attr_accessor :periods
-  attr_accessor :nominal
-
-  def ==(rate)
-    self.nominal == rate.nominal and self.periods == rate.periods
-  end
-
-  # Alias method for *effective*.
-  def apr=(apr)
-    self.effective = apr
-  end
-
-  def apr
-    self.effective
-  end
-
-  # Alias method for *effective*.
-  def apy=(apy)
-    self.effective = apy
-  end
-
-  def apy
-    self.effective
-  end
-
-  def effective=(rate)
-    unless @periods == Flt::DecNum.infinity
-      @nominal = @periods * ((1 + rate) ** (1 / @periods) - 1)
-    else
-      @nominal = Math.log(rate + 1)
-    end
-  end
-
-  def effective
-    unless @periods == Flt::DecNum.infinity
-      (1 + @nominal / @periods) ** @periods - 1
-    else
-      @nominal.exp - 1
-    end
-  end
-
-  def initialize(rate, type, opts={})
-    # Make sure the rate is a decimal.
-    unless rate.class == Flt::DecNum
-      rate = Flt::DecNum rate.to_s 
-    end
-
-    # Set the compounding interval.
-    compounding = opts.fetch(:compounds, :monthly)
-
-    translate = {
-      :annually => Flt::DecNum(1),
-      :continuously => Flt::DecNum.infinity,
-      :daily => Flt::DecNum(365),
-      :monthly => Flt::DecNum(12),
-      :quarterly => Flt::DecNum(4),
-      :semiannually => Flt::DecNum(2)
-      }
-
-    if translate.has_key? compounding
-      @periods = translate.fetch compounding
-    elsif compounding.kind_of? Numeric
-      @periods = Flt::DecNum compounding.to_s 
-    end
-
-    # Set the rate in the proper way, based on the value of :type:.
-    if %w{apr apy effective}.include? type.to_s
-      self.effective = rate
-    else
-      @nominal = rate
-    end
-
-    # Set the remainder of the attributes provided in :opts:.
-    opts.each do |key, value|
-      unless key == :compounds
-        send("#{key}=", value)
-      end
-    end
-  end
-
-  def inspect
-    "Rate.new(#{self.apr.round(6)}, :apr)"
-  end
-
-  def monthly
-    (self.effective / 12).round(15)
-  end
-end