Accrued Interest on TI Bond Worksheet

[Gordon Gekko CFA]

I have a feeling this feature is handy for interest expense in different period questions... However I can never seem to have its value be anything but zero, so I'm just interested in hearing what I'm doing wrong and if this feature is useful or not...

 

[bpdulog]

Did you go to the PRI screen and hit CPT? I think you have to compute the price or yield 1st before you can get accrued interest.

 

[Gordon Gekko CFA]

With both a price and a yield, I still show no AI

 

[bpdulog]

How about your dates? It'll only work if the bond is redeemed in between payment periods.

Try this example I just made up:

SDT: 1-1-2000
CPN: 50
RDT: 3-1-2003
RV: 100
YLD: 5.5
PRI: 227.5843

AI should be 16.7582

 

[Gordon Gekko CFA]

Ahhh now it makes sense. AI is not used in the sense that I thought it was. I thought it related to accrued interest expense as opposed to interest accrued at maturity or redemption.