cdai

Accrued interest on certificate of deposit

Description

example

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).

example

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

Examples

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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

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

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

Data Types: double

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 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

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

(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

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

Introduced before R2006a