Calculation

Summary: This is formula 2 calculation used for figuring the daily OID for the initial accrual period of a stripped bond or coupon acquired after 1984: (a.p. multiplied by (1 plus y.t.m. divided by n)) raised to (r divided by s)) power minus a.p) divided by r: Where: a.p. is the acquisition price; y.t.m is the yield to maturity; n is the number of accrual periods in 1 year; p is the number of days from purchase to end of short accrual period; and s is the number of days in accrual period ending on last day of short accrual period.