fvMmiUsingQuotedDiscRate: Calculates Future Value of Money Market Instruments using the...

In bondAnalyst: Methods for Fixed-Income Valuation, Risk and Return

Calculates Future Value of Money Market Instruments using the given Discount Rate.

Description

Calculates Future Value of Money Market Instruments using the given Discount Rate.

Usage

fvMmiUsingQuotedDiscRate(pvMmi, daysToMaturity, daysInYear, mmQuotedDiscRate)

Arguments

pvMmi	A number.
daysToMaturity	A number.
daysInYear	A number.
mmQuotedDiscRate	A number.

Details

According to information provided by Adams and Smith (2019), the method fvMmiUsingQuotedDiscRate() is developed to calculate Future Value of Money Market Instruments using the given Discount Rate for the values passed to its four arguments. Here, pvMmi is present value of the Money Market Instrument, daysToMaturity is number of days till the maturity, daysInYear is taken to be 360, and mmQuotedDiscRate is Money Market Quoted Discount Rate. For example, an output value of 10,000,000 dollars denotes the value of redemption amount to be paid at maturity for a Money Market Instrument that had the present value of 9,943,125 dollars.

Value

Input values to four arguments pvMmi , daysToMaturity,daysInYear and mmQuotedDiscRate.

Author(s)

MaheshP Kumar, [e-mail]

References

Adams,J.F. & Smith,D.J.(2019). Introduction to fixed-income valuation. In CFA Program Curriculum 2020 Level I Volumes 1-6. (Vol. 5, pp. 107-151). Wiley Professional Development (P&T). ISBN 9781119593577, https://bookshelf.vitalsource.com/books/9781119593577

Examples

fvMmiUsingQuotedDiscRate(pvMmi=9943125,daysToMaturity=91,daysInYear=360,mmQuotedDiscRate=0.0225)

bondAnalyst documentation built on Aug. 13, 2022, 5:05 p.m.