The base rate in a financial context often refers to a fundamental rate of interest that commercial banks charge their most creditworthy customers. It serves as a benchmark for many other lending rates. Understanding how it's determined can provide insight into the broader economic landscape and borrowing costs.
Result:
function calculateBaseRate() {
var riskFreeRate = parseFloat(document.getElementById("riskFreeRate").value);
var inflationPremium = parseFloat(document.getElementById("inflationPremium").value);
var liquidityPremium = parseFloat(document.getElementById("liquidityPremium").value);
var maturityRiskPremium = parseFloat(document.getElementById("maturityRiskPremium").value);
var baseRateResultElement = document.getElementById("baseRateResult");
baseRateResultElement.innerHTML = ""; // Clear previous result
if (isNaN(riskFreeRate) || isNaN(inflationPremium) || isNaN(liquidityPremium) || isNaN(maturityRiskPremium)) {
baseRateResultElement.innerHTML = "Please enter valid numbers for all fields.";
return;
}
// Ensure premiums are not negative, as they represent additional risk/cost
if (riskFreeRate < 0 || inflationPremium < 0 || liquidityPremium < 0 || maturityRiskPremium < 0) {
baseRateResultElement.innerHTML = "Input values for premiums cannot be negative.";
return;
}
// Base Rate = Risk-Free Rate + Inflation Premium + Liquidity Premium + Maturity Risk Premium
var baseRate = riskFreeRate + inflationPremium + liquidityPremium + maturityRiskPremium;
baseRateResultElement.innerHTML = "Base Rate: " + baseRate.toFixed(2) + "%";
}
.calculator-container {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.input-section {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 15px;
margin-bottom: 20px;
}
.input-section label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-section input[type="number"] {
width: calc(100% – 12px); /* Account for padding/border */
padding: 8px;
border: 1px solid #ddd;
border-radius: 4px;
box-sizing: border-box; /* Include padding and border in the element's total width and height */
}
button {
display: block;
width: 100%;
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 5px;
cursor: pointer;
font-size: 16px;
transition: background-color 0.3s ease;
}
button:hover {
background-color: #0056b3;
}
.result-section {
margin-top: 25px;
text-align: center;
border-top: 1px solid #eee;
padding-top: 20px;
}
.result-section h3 {
color: #444;
margin-bottom: 10px;
}
#baseRateResult {
font-size: 20px;
font-weight: bold;
color: #28a745;
}