# cdprice

Price of certificate of deposit

## Syntax

``[Price,AccrInt] = cdprice(Yield,CouponRate,Settle,Maturity,IssueDate)``
``[PriceAccrInt] = cdprice(___,Basis)``

## Description

example

````[Price,AccrInt] = cdprice(Yield,CouponRate,Settle,Maturity,IssueDate)` computes the price of a certificate of deposit given its yield.`cdprice` 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`). ```

example

````[PriceAccrInt] = cdprice(___,Basis)` adds an optional argument for `Basis`. ```

## Examples

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This example shows how to compute the price and the accrued interest due on the settlement date, given a certificate of deposit with the following characteristics.

```Yield = 0.0525; CouponRate = 0.05; Settle = '02-Jan-02'; Maturity = '31-Mar-02'; IssueDate = '1-Oct-01'; [Price, AccruedInt] = cdprice(Yield, CouponRate, Settle, ... Maturity, IssueDate)```
```Price = 99.9233 ```
```AccruedInt = 1.2917 ```

This example shows how to use `datetime` inputs to compute the price and the accrued interest due on the settlement date, given a certificate of deposit with the following characteristics.

```Yield = 0.0525; 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'); [Price, AccruedInt] = cdprice(Yield, CouponRate, Settle, ... Maturity, IssueDate)```
```Price = 99.9233 ```
```AccruedInt = 1.2917 ```

## Input Arguments

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Simple yield to maturity over the basis denominator, specified as a numeric value using a scalar or a `NCDS`-by-`1` or `1`-by-`NCDS` vector.

Data Types: `double`

Coupon annual interest rate, specified as decimal using a scalar or a `NCDS`-by-`1` or `1`-by-`NCDS` vector.

Data Types: `double`

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

Data Types: `double` | `char` | `datetime`

Maturity date for the certificate of deposit, specified as a scalar or a `NCDS`-by-`1` or `1`-by-`NCDS` vector using serial date numbers, date character vectors, or datetime arrays.

Data Types: `double` | `char` | `datetime`

Issue date for the certificate of deposit, specified as a scalar or a `NCDS`-by-`1` or `1`-by-`NCDS` vector using serial date numbers, date character vectors, or datetime arrays.

Data Types: `double` | `char` | `datetime`

(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

Data Types: `double`

## Output Arguments

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Clean price of the certificate of deposit per \$100, returned as a `NCDS`-by-`1` or `1`-by-`NCDS` vector.

Accrued interest payable at settlement per unit of face value, returned as a `NCDS`-by-`1` or `1`-by-`NCDS` vector.

| | | (Financial Instruments Toolbox) | |

### Topics

Introduced before R2006a