Whats the value of encapsulating an algorithm into a single function?
One key benefit of encapsulation is that a model can be reused in other spreadsheets without copying over copious amounts of the original spreadsheet. Imagine a spreadsheet that takes a bond’s maturity and coupon, which then generates cash flows for every coupon date in the future, which are then discounted back at some assume interest rate, and then summed up to get a theoretical price for the bond. This could take up hundreds of rows and several columns. If the calculation were to be done on a portfolio of bonds, all those rows and columns would have to be copied across or down to have a separate section for each bond in the portfolio. But with Calc4Web, once the model has been created for one bond, you simply push a button to create a function with the coupon, maturity, and interest rate as the inputs. Then, use the function for each bond in the portfolio. The number of cells in the spreadsheet is reduced from several thousand to just a handful.
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