Automating Partial Period Bond Valuation With Excels Day Counting Functions
An Excel model for calculating the actual price of bonds under a 30 day/month, 360 day/year day counting assumption by nesting the DAYS360 function within the PV function is developed. When programmed into an Excel spreadsheet, the model can accommodate annual and semiannual payment bonds sold on or between interest dates using six fundamental inputs, including the bond’s par value, maturity date, annual stated rate of interest, and payment frequency, the annual market rate of interest, and the settlement date. Thus, the model can be applied across the business curriculum in a variety of introductory and more advanced level courses.
Accounting for Bonds With Accrued Interest in Conformity With Brokers' Valuation Formulas
This article explains how to apply brokers' valuation methods to accounting for bonds when interest payments do not coincide with settlement or balance sheet dates. We show how to calculate a bond's present value on these dates using a simple approach that conforms with the method used by brokerage institutions to compute the bond's “actual price.” We then clarify how a broker subtracts accrued interest from this actual price to arrive at the quoted price, and how this quoted price relates to the bond's carrying amount and “fair value” (per SFAS Nos. 107, 115 and 124). We also precisely compute the change in a bond's carrying amount over fractional periods after settlement and around balance sheet dates. Finally, we demonstrate how to integrate these refinements into intermediate textbook illustrations. Throughout, we provide instructions for computing bond valuations using spreadsheet application functions.
La inseguridad jurídica en normas de contratación estatal
It is established by different studies that the issue of government procurement has been marred by several factors, the test objective to publicize these factors, we take as starting point the constant conflict between the branches of government to try and organize this subject; will collect and analyze diverse regulatory and case material in order to achieve evidence and demonstrate the different concepts of constant change that produces excessive regulation of the subject procurement and is in turn causing rapid changes that result in legal uncertainty for our law on the Contract Status.