Accrued interest on certificate of deposit
AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate, Basis)
Annual interest rate in decimal.
Settlement date. Settle must be earlier than Maturity.
(Optional) Day-count basis of the instrument.
For more information, see basis.
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 ().
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).
This example shows how to compute the accrued interest due, given a certificate of deposit with the following characteristics.
CouponRate = 0.05; Settle = '02-Jan-02'; Maturity = '31-Mar-02'; IssueDate = '1-Oct-01'; AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate)
AccrInt = 1.2917