I've tried every combination of trade, settlement dates and can't get the numbers to match.Are you using settlement dates or trade dates? If trade dates, instead try settlement dates for all but maturity and see if that's closer.Does know the formula used to compute accrued market discount for notes/bonds? Specifically, trying to match the accrued market discount computed by Fidelity's 1099 vs my calculation on spreadsheet.
My spreadsheet computes a daily interest between purchase date and maturity and then computes accrued market discount for number of days held. If I hold to maturity, the formula works as it computes exactly the difference between par value and my cost basis. But for notes that I sell early, the amount I calculate is off by a few dollars from the accrued market discount on Fidelity's 1099. Adjusting the number of days +/1 doesn't seem to lead to a match with Fidelity's formula.
It is not critical for my tax return as I will just report whatever Fidelity computed. But would like my tracking spreadsheet to match if possible.
I suspect the discrepancy is due to not taking the coupon into account, hence my simplistic daily interest formula may not be accurate. It works fine for computing ratable share of t-bill sales as there is no coupon in that case. So I need to find a better formula I suspect.
Statistics: Posted by kalarama — Thu Feb 29, 2024 5:02 pm — Replies 890 — Views 129703