prbond (Financial Toolbox)

Price of security with regular periodic interest payments.

Syntax

[p, ai] = prbond(sd, md, rv, cpn, yld, per, basis)
[p, ai] = prbond(sd, md, rv, cpn, yld, per)
[p, ai] = prbond(sd, md, rv, cpn, yld)

Arguments

sd: Settlement date. Enter as serial date number or date string. sd must be earlier than or equal to md.

md: Maturity date. Enter as serial date number or date string.

rv: Redemption (par, face) value.

cpn: Coupon rate. Enter as decimal fraction.

yld: Yield. Enter as decimal fraction.

per: Coupons per year. An integer. Default = 2.

basis: Day-count basis: 0 = actual/actual (default), 1 = 30/360,
2 = actual/360, 3 = actual/365.

Description

[p, ai] = prbond(sd, md, rv, cpn, yld, per, basis)

returns the price p and accrued interest ai of a security with regular periodic interest payments. This function also applies to zero-coupon bonds or pure discount securities by setting cpn = 0.

Example

Using this data:

sd = '02/01/1960';
md = '01/01/1990';
rv = 1000;
cpn = 0.08;
yld = 0.06;
per = 2;
basis = 0;

[p, ai] = prbond(sd, md, rv, cpn, yld, per, basis)

returns

p =
    1276.64e+003
ai =
    6.8132