Accrued interest on certificate of deposit
AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate, Basis)
Annual interest rate in decimal.
(Optional) Day-count basis of the instrument.
For more information, see basis.
Each required input must be some certificates of deposit (
vector or scalar. The optional
Basis argument may
be either a
1 or a
a scalar, or the empty matrix (
AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate,
Basis) computes the accrued interest on a certificate of
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