Value dating payments

It is calculated by multiplying the coupon rate by the face value of the bond and then dividing by the number of payments per year.For example, a 10% coupon bond with semiannual payments and a

It is calculated by multiplying the coupon rate by the face value of the bond and then dividing by the number of payments per year.For example, a 10% coupon bond with semiannual payments and a $1,000 face value would pay $50 every six months. This is the annual interest rate that will be paid by the issuer to the owners of the bonds.If the settlement date is before the dated date, then the purchaser will pay the issuer the accrued interest for that amount of time.Of course, the purchaser will get a full coupon payment on the first coupon date, so the purchaser will get the accrued interest back at that time.The indenture covers such things as the original term to maturity, the interest rate, interest payment dates, protective covenants, collateral pledged (if any), and so on.

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It is calculated by multiplying the coupon rate by the face value of the bond and then dividing by the number of payments per year.

For example, a 10% coupon bond with semiannual payments and a $1,000 face value would pay $50 every six months. This is the annual interest rate that will be paid by the issuer to the owners of the bonds.

If the settlement date is before the dated date, then the purchaser will pay the issuer the accrued interest for that amount of time.

Of course, the purchaser will get a full coupon payment on the first coupon date, so the purchaser will get the accrued interest back at that time.

The indenture covers such things as the original term to maturity, the interest rate, interest payment dates, protective covenants, collateral pledged (if any), and so on.

,000 face value would pay every six months. This is the annual interest rate that will be paid by the issuer to the owners of the bonds.If the settlement date is before the dated date, then the purchaser will pay the issuer the accrued interest for that amount of time.Of course, the purchaser will get a full coupon payment on the first coupon date, so the purchaser will get the accrued interest back at that time.The indenture covers such things as the original term to maturity, the interest rate, interest payment dates, protective covenants, collateral pledged (if any), and so on.

This convention is still used today in some calculations such as the Bank Discount Rate that is used for discount (money market) securities.There are several methods, each of which makes different assumptions about how to count.30/360 (a banker's year) assumes that each month has 30 days and that there are 360 days in a year.This is used when valuing bonds, swaps, derivatives, and when calculating accrued interest on a bond.A method of counting the number of days between two dates.

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