cdai

Accrued interest on certificate of deposit

Syntax

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

AccrInt = cdai(___,Basis)

Description

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

cdai assumes that the certificates of deposit pay interest at maturity. Because of the simple interest treatment of these securities, this function is best used for short-term maturities (less than 1 year). The default simple interest calculation uses the Basis for the actual/360 convention (2).

AccrInt = cdai(___,Basis) adds an optional argument for Basis.

Examples

Find the Accrued Interest on a Certificate of Deposit

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

Find the Accrued Interest on a Certificate of Deposit Using datetime Inputs

This example shows how to use datetime inputs to compute the accrued interest due, given a certificate of deposit with the following characteristics.

CouponRate =  0.05;
Settle =  datetime('02-Jan-02','Locale','en_US');
Maturity =  datetime('31-Mar-02','Locale','en_US');
IssueDate =  datetime('1-Oct-01','Locale','en_US');
AccrInt = cdai(CouponRate, Settle, Maturity, IssueDate)

AccrInt = 1.2917

Input Arguments

CouponRate — Annual interest rate

decimal

Annual interest rate, specified as decimal using a scalar or a NCDS-by-1 or 1-by-NCDS vector.

Data Types: double

Settle — Settlement date for certificate of deposit

serial date number | date character vector | datetime

Settlement date for the certificate of deposit, specified as a scalar or a NCDS-by-1 or 1-by-NCDS vector using serial date numbers, date character vectors, or datetime arrays. The Settle date must be before the Maturity date.

Data Types: double | char | datetime

Maturity — Maturity date for certificate of deposit

serial date number | date character vector | datetime

Maturity date for the certificate of deposit, specified as a scalar or a NCDS-by-1 or 1-by-NCDS vector using serial date numbers, date character vectors, or datetime arrays.

Data Types: double | char | datetime

IssueDate — Issue date for certificate of deposit

serial date number | date character vector | datetime

Issue date for the certificate of deposit, specified as a scalar or a NCDS-by-1 or 1-by-NCDS vector using serial date numbers, date character vectors, or datetime arrays.

Data Types: double | char | datetime

Basis — Day-count basis for certificate of deposit

2 (actual/360) (default) | integers of the set [0...13] | vector of integers of the set [0...13]

(Optional) Day-count basis for the certificate of deposit, specified as a scalar or a NINST-by-1 vector. Values are:

• 0 = actual/actual

• 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 (ICMA)

• 9 = actual/360 (ICMA)

• 10 = actual/365 (ICMA)

• 11 = 30/360E (ICMA)

• 12 = actual/365 (ISDA)

• 13 = BUS/252

For more information, see Basis.

Data Types: double

Output Arguments

AccrInt — Accrued interest per $100 of face value

numeric

Accrued interest per $100 of face value, returned as a NCDS-by-1 or 1-by-NCDS vector.