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Subject: [OASIS Issue Tracker] Updated: (OFFICE-2704) ACCRINT description isinconsistent

     [ http://tools.oasis-open.org/issues/browse/OFFICE-2704?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]

Robert Weir  updated OFFICE-2704:

The context of this function is when purchasing bonds on the market.  You probably will not purchase the bond exactly on a coupon date.  So the seller of the bond will want fair compensation for the prorated portion of the next coupon that was accrued while the seller owned the bond.  This is typically tagged on the the selling price of the bond.

A Short or long coupon refers to the first (or sometimes last) interest payment which may not be a standard length.  So a bond might pay semi annually, but if the bond is issued on March 1st, and the scheduled coupons are March 15th and September 15th, then the first period is "short".

Since this function is dealing with accrued interest, we're only worried about interest from the start of the current coupon period until the settlement date.  In other words, this is accrued interest for a single coupon period.  Once we identify what the coupon period is, the calculation is trivial.

If settlement <=first, then we are in our first coupon period.  So the interest has accrued from issue to settlement, and that is our period.

If settlement>first, then we are in our 2nd or later coupon period.  We can then determine the schedule according to the when the first payment was, and the coupon frequency, semiannually or whatever.   365 doesn't divide evenly by 2 or 4, so there must be some convention for how semiannual or quarterly payments are made.  And does this interact with basis?  But it seems that given this schedule you would look for the first coupon date preceding the settlement date and then calculate the accrued interest from that date until the settlement date.

> ACCRINT description is inconsistent
> -----------------------------------
>                 Key: OFFICE-2704
>                 URL: http://tools.oasis-open.org/issues/browse/OFFICE-2704
>             Project: OASIS Open Document Format for Office Applications (OpenDocument) TC
>          Issue Type: Bug
>          Components: OpenFormula
>    Affects Versions: ODF 1.2 CD 05
>            Reporter: Andreas Guelzow 
>            Assignee: Robert Weir 
>             Fix For: ODF 1.2 CD 06
> The description of ACCRINT has several issues:
> 1) The constraint is given as: issue < first < settlement ; coupon > 0; par > 0. OOo and Excel clearly permit settlement<first and most examples on the web seem to be of that kind.
> 2) The short description of calc_method reads "A logical value that specifies how to treat the case where settlement>first." which seems to imply that there is a permitted case where settlement > first does not hold.
> 3) The formula given contains the undefined  variables start-of-period and end-of-period. Especially in view of the statement "ACCRINT
> supports short, standard, and long coupon periods.", it is not clear what those values are.
> 4) If the constraint is changed, a formula for the settlement < first case is needed.

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