Fixed-Income Toolbox™

cdai - Accrued interest on certificate of deposit (CD)

Syntax

AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate, Basis)

Arguments

`CouponRate`	Annual interest rate in decimal.
`Settle`	Settlement date. `Settle` must be earlier than or equal to `Maturity`.
`Maturity`	Maturity date.
`IssueDate`	Issue date.
`Basis`	(Optional) Day-count basis of the instrument. 0 = actual/actual (default) 1 = 30/360 (SIA) 2 = actual/360 3 = actual/365 4 = 30/360 (PSA) 5 = 30/360 (ISDA) 6 = 30/360 (European) 7 = actual/365 (Japanese) 8 = actual/actual (ISMA) 9 = actual/360 (ISMA) 10 = actual/365 (ISMA) 11 = 30/360E (ISMA) 12 = actual/365 (ISDA)

Each required input must be some certificates of deposit (NCDS)-by-1 or 1-by-NCDS conforming vector or scalar. The optional Basis argument may be either a NCDS-by-1 or a 1-by-NCDS vector, a scalar, or the empty matrix ([]).

Description

AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate, Basis) computes the accrued interest on a certificate of deposit.

AccrInt represents the accrued interest per $100 of face value.

This function assumes that the certificates of deposit pay interest at maturity. Because of the simple interest treatment of these securities, the function is best used for short-term maturities (less than 1 year). The default simple interest calculation is the actual/360 convention (SIA).

Examples

Given a certificate of deposit (CD) with these characteristics, compute the accrued interest due on the CD.

CouponRate      =  0.05;
Settle          =  '02-Jan-02';
Maturity        =  '31-Mar-02';
IssueDate       =  '1-Oct-01';

AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate)

AccrInt =

    1.2917

cdai - Accrued interest on certificate of deposit (CD)

Syntax

Arguments

Description

Examples

See Also