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

datetime array | string array | date character vector

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

To support existing code, cdai also accepts serial date numbers as inputs, but they are not recommended.

Data Types: char | string | datetime

Maturity — Maturity date for certificate of deposit

datetime array | string array | date character vector

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

To support existing code, cdai also accepts serial date numbers as inputs, but they are not recommended.

Data Types: char | string | datetime

IssueDate — Issue date for certificate of deposit

datetime array | string array | date character vector

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

To support existing code, cdai also accepts serial date numbers as inputs, but they are not recommended.

Data Types: char | string | 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.

Version History

Introduced before R2006a

R2022b: Serial date numbers not recommended

Although cdai supports serial date numbers, datetime values are recommended instead. The datetime data type provides flexible date and time formats, storage out to nanosecond precision, and properties to account for time zones and daylight saving time.

To convert serial date numbers or text to datetime values, use the datetime function. For example:

t = datetime(738427.656845093,"ConvertFrom","datenum");
y = year(t)

y =

        2021

There are no plans to remove support for serial date number inputs.