MATURITY_REC Function

Evaluates the amount one receives when a fully invested security reaches the maturity date.

Usage

result = MATURITY_REC(settlement, maturity, investment, discount_rate, basis)

Input Parameters

settlement—The date on which payment is made to settle a trade. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User Guide.

maturity—The date on which the bond comes due, and principal and accrued interest are paid. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User Guide.

investment—The total amount one has invested in the security.

discount_rate—The interest rate implied when a security is sold for less than its value at maturity in lieu of interest payments.

basis—The method for computing the number of days between two dates. It should be 0, 1, 2, 3, or 4.

0—Actual/Actual

1—US (NASD) 30/360

2—Actual/360

3—Actual/365

4—European 30/360

Returned Value

result—The amount one receives when a fully invested security reaches its maturity date. If no result can be computed, NaN is returned.

Input Keywords

Double—If present and nonzero, double precision is used.

Discussion

Function MATURITY_REC computes the amount received at maturity for a fully invested security.

It is computed using the following:

 

In the equation above, B represents the number of days in a year based on the annual basis, and DIM represents the number of days in the period starting with the issue date and ending with the maturity date.

Example

In this example, MATURITY_REC computes the amount received of a $7,000 investment with the settlement date of July 1, 1995, maturity date of July 1, 2005 and discount rate of 6%, using the Actual/365 day count method.

settlement = VAR_TO_DT(1995, 7, 1)

maturity = VAR_TO_DT(2005, 7, 1)

investment = 7000.

discount = .06

basis = 3

PRINT, MATURITY_REC(settlement, maturity, investment, $ 

   discount, basis)

; PV-WAVE prints: 17521.6