Introduction

IMSL Mathematics Reference Guide > Special Functions > Introduction

Introduction

Most of the financial functions require one or more of the following:

Date: Refer to Chapter 8: Working with Date/Time Data in the PV‑WAVE User’s Guide.

Number of payments per year

A variable to indicate when payments are due

Day count basis

PV-WAVE Advantage uses the variable frequency to indicate the number of payments for each year. The possible settings are:

Table 10-1: frequency Settings
Identifier (frequency)	Meaning
0	One payment per year (Annual payment)
2	Two payments per year (Semi-annual payment)
4	Four payments per year (Quarterly payment)

PV-WAVE Advantage uses the variable when to indicate when payments are due. The possible settings are:

Table 10-2: when Settings
Identifier (when)	Meaning
0	Payments are due at the end of the period
1	Payments are due at the beginning of the period

PV-WAVE Advantage uses the variable basis to indicate the type of day count basis. Day count basis is the method for computing the number of days between two dates. The possible settings are:

Table 10-3: basis Settings
Identifier (basis)	Day count basis
0	US (NASD) 30/360
1	Actual/Actual
2	Actual/360
3	Actual/365
4	European 30/360

Additional Information

In preparing the finance and bond functions we incorporated standards used by SIA Standard Securities Calculation Methods.

More detailed information on finance and bond functionality can be found in the following manuals:

SIA Standard Securities Calculation Methods 1993, vols. 1 & 2, Third Edition.

Accountants' Handbook, Volume 1, Sixth Edition.

Microsoft Excel 5, Worksheet Function Reference.

Version 2017.0