bondAnalyst (version 1.0.1)

pricingCommercialPaper: Calculates Price of Commercial Paper.

Description

Calculates Price of Commercial Paper.

Usage

pricingCommercialPaper(
  maturityVal,
  daysToMaturity,
  daysInYear,
  mmQuotedDiscRate
)

Value

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

Arguments

maturityVal

A number.

daysToMaturity

A number.

daysInYear

A number.

mmQuotedDiscRate

A number.

Author

MaheshP Kumar,

Details

According to information provided by Adams and Smith (2019), the method pricingCommercialPaper() is developed to calculate the price of Commercial Paper for the values passed to its four arguments. Here, maturityVal is maturity value of the Commercial Paper, 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 98.56 means that the price of the commercial paper is 98.56 dollars per 100 dollars of face value.

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

pricingCommercialPaper(maturityVal=100,daysToMaturity=90,daysInYear=360,mmQuotedDiscRate=0.0576)