cdyield
Yield on certificate of deposit (CD)
Description
computes the yield to maturity of a certificate of deposit given its clean
price.Yield
= cdyield(Price
,CouponRate
,Settle
,Maturity
,IssueDate
)
cdyield
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
).
Examples
Compute the Yield to Maturity of a Certificate of Deposit
This example shows how to compute the yield on the certificate of deposit (CD), given a CD with the following characteristics.
Price = 101.125; CouponRate = 0.05; Settle = '02-Jan-02'; Maturity = '31-Mar-02'; IssueDate = '1-Oct-01'; Yield = cdyield(Price, CouponRate, Settle, Maturity, IssueDate)
Yield = 0.0039
Compute the Yield to Maturity of a Certificate of Deposit Using datetime Inputs
This example shows how to use datetime
inputs to compute the yield on the certificate of deposit (CD), given a CD with the following characteristics.
Price = 101.125; 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'); Yield = cdyield(Price, CouponRate, Settle, Maturity, IssueDate)
Yield = 0.0039
Input Arguments
Price
— Clean price of certificate of deposit per $100 face
numeric
Clean price of the certificate of deposit per $100 face, specified as
a numeric value using a scalar or a
NCDS
-by-1
or
1
-by-NCDS
vector.
Data Types: double
CouponRate
— Coupon annual interest rate
decimal
Coupon 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 of certificate of deposit
datetime array | string array | date character vector
Settlement date of 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, cdyield
also
accepts serial date numbers as inputs, but they are not recommended.
Data Types: char
| string
| datetime
Maturity
— Maturity date of certificate of deposit
datetime array | string array | date character vector
Maturity date of 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, cdyield
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, cdyield
also
accepts serial date numbers as inputs, but they are not recommended.
Data Types: string
| 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
Yield
— Simple yield to maturity of certificate of deposit
numeric
Simple yield to maturity of the certificate of deposit, returned as a
NCDS
-by-1
or
1
-by-NCDS
vector.
Version History
Introduced before R2006aR2022b: Serial date numbers not recommended
Although cdyield
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.
See Also
bndprice
| cdai
| cdprice
| stepcpnprice
(Financial Instruments Toolbox) | tbillprice
| datetime
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