Sample Trade Details
Issue Date: 1/1/2005
Maturity Date: 1/1/2035
Trade Date: 6/3/2013
Settle Date: 6/3/2013
Purchase Price: 90
Variable Rates
Effective Date | Current Variable Rate |
2005-01-01 | 0 |
2020-01-01 | 30 |
Sample Yields
The following table compares step bond yields based on the Bifurcation Method selected.
Earned Thru Date | Bifurcate Yes | Bifurcate No - Par Restricted |
|---|---|---|
7/1/2013 | 0.4888790% | 13.1968716% |
1/1/2014 | 0.4888790% | 13.1968716% |
7/1/2014 | 0.4888790% | 13.1968716% |
1/1/2015 | 0.4888790% | 13.1968716% |
7/1/2015 | 0.4888790% | 13.1968716% |
1/1/2016 | 0.4888790% | 13.1968716% |
7/1/2016 | 0.4888790% | 13.1968716% |
1/1/2017 | 0.4888790% | 13.1968716% |
7/1/2017 | 0.4888790% | 13.1968716% |
1/1/2018 | 0.4888790% | 13.1968716% |
7/1/2018 | 0.4888790% | 13.1968716% |
1/1/2019 | 0.4888790% | 13.1968716% |
7/1/2019 | 0.4888790% | 13.1968716% |
1/1/2020 | 32.3075336% | 13.1968716% |
7/1/2020 | 32.3075336% | 13.1968716% |
1/1/2021 | 32.3075336% | 13.1968716% |
7/1/2021 | 32.3075336% | 13.1968716% |
1/1/2022 | 32.3075336% | 13.1968716% |
7/1/2022 | 32.3075336% | 13.1968716% |
1/1/2023 | 32.3075336% | 13.1968716% |
7/1/2023 | 32.3075336% | 13.1968716% |
1/1/2024 | 32.3075336% | 13.1968716% |
7/1/2024 | 32.3075336% | 13.1968716% |
1/1/2025 | 32.3075336% | 13.1968716% |
7/1/2025 | 32.3075336% | 13.1968716% |
1/1/2026 | 32.3075336% | 13.1968716% |
7/1/2026 | 32.3075336% | 13.1968716% |
1/1/2027 | 32.3075336% | 13.1968716% |
7/1/2027 | 32.3075336% | 13.1968716% |
1/1/2028 | 32.3075336% | 13.1968716% |
7/1/2028 | 32.3075336% | 13.1968716% |
1/1/2029 | 32.3075336% | 13.1968716% |
7/1/2029 | 32.3075336% | 13.1968716% |
1/1/2030 | 32.3075336% | 13.1968716% |
7/1/2030 | 32.3075336% | 13.1968716% |
1/1/2031 | 32.3075336% | 13.1968716% |
7/1/2031 | 32.3075336% | 13.1968716% |
1/1/2032 | 32.3075336% | 13.1968716% |
7/1/2032 | 32.3075336% | 13.1968716% |
1/1/2033 | 32.3075336% | 13.1968716% |
7/1/2033 | 32.3075336% | 13.1968716% |
1/1/2034 | 32.3075336% | 13.1968716% |
7/1/2034 | 32.3075336% | 13.1968716% |
12/31/2034 | 32.3075336% | 13.1968716% |
As the previous table shows, if you set the Step Bond Utilize Bifurcation Method option to No Bifurcation Par Restricted or No Bifurcation Transcend Par, Eagle Accounting recognizes all the future cash flows at the time of the trade, and thus Eagle Accounting calculates the same yield throughout the life of the security. By recognizing all the future cash flows in the calculation of amortization yield, Eagle Accounting recognizes more amortization income in the earlier part of the bond's life (the security accrues interest at lower coupon rates up until 1/1/2020). Recognizing more amortization in the earlier part of the bond's life allows you to recognize a smoother stream of total income over the life of the security. As the rates increase, the bond recognizes less amortization. See the following figures.
Add Comment