MATLAB: What is different between start date of bond and issue date of bond

in financial toolbox we have a code for compute price of bonds, this code has optional inputs that issue date and start date are two of they. what is different between start date of bond and issue date of bond? and what is their impact on bond price?

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This is explained in the documentation for bndprice, but I'm guessing that you didn't fully understand the explanation there.

IssueDate is exactly what you expect ... the date the bond was issued. Suppose that date was July 1, 2014.

StartDate is just a little trickier. When you estimate the current value of the bond, you are adding up the (discounted) future cash flows of that bond. You might not want to do that from the original issue date. You might want to do that starting today (or some date in the future). Then you'll ignore the past cash flows, the ones from July 1 2014 until today (or whenever). So, StartDate is the date you want to start adding up the future cash flows.

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MATLAB: Date Axis

In your linspace() use numtick+1 .

For example suppose there was a difference of 1 year, 365 days. The serial date difference would be 365, round(365/365) would be 1, and then your current code would try to represent that 1 year range as a single value whereas you want one for the beginning and one for the end.

Also, you might have to cellstr() around the datestr() call.

MATLAB: What does the first cash flow value signify when I calculate the cash flows for a bond using cfamounts function in Financial Toolbox 4.1 (R2011b)

The values mentioned in the first cash flows (the first lines in each of the respective results above) are accrued interests. When buying a bond between coupon dates (cash flow dates), you have to pay for the fraction of the coupon that is proportional to the amount of time since the last coupon date which is approximately,

     ( now - last coupon date) / (next coupon date - last coupon date)

So, in scenario (A) above, the accrued interest is 0 because the settlement date falls on a coupon date (nothing has accrued). In scenario (B), the accrued interest is close to 6, because the settle date ('1-Dec-2011') is almost reaching the next coupon date ('31-Dec-2011'). The number is negative because while you are receiving the coupons (i.e. 6, 6, 106, an incoming cash flow), you need to pay the accrued interest (it is an outgoing cash flow).

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MATLAB: Date Axis

MATLAB: What does the first cash flow value signify when I calculate the cash flows for a bond using cfamounts function in Financial Toolbox 4.1 (R2011b)

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