The date one uses to calculate accrued interest on various debt instruments, specifically bonds. The date on which interest begins to accrue on a bond or other fixed-income security. The buyer of a bond in the primary market must pay the issuer interest accruing between the dated. Shmoop's Finance Glossary defines Dated Date in relatable, easy-to-understand language. "she asked how to avoid kissing at the end of a date"; "She wrote the letter on Monday but she dated it Saturday so as not to reveal that she procrastinated".
Dated date - amusing question
For example, a new bond issue with a dated date of July 1 and a settlement date of July 20 would require purchasers to pay 19 days' interest in addition to the face value of the bonds. This rate is typically fixed for the life of the bond, though variable rate bonds do exist. Yield to Maturity The yield to maturity YTM of a bond is the compound average annual expected rate of return if the bond is purchased at its current market price and held to maturity. Most commonly, bonds are promises to pay a fixed rate of interest for a number of years, and then to repay the principal on the maturity date. Yield to Call Same as yield to maturity, except that we assume that the bond will be called at the next call date. If one buys a fixed-income security between dated dates, one must compensate the seller for all interest that has accrued in addition to the purchase price. The term is derived from the fact that, in times past, bond certificates had coupons dated date.
Coupon Rate The stated rate of interest on the bond. It works the same way for any other fraction of a payment period. Bonds have their own unique terminology, and it is important to understand these words if you are to be a successful bond investor. This additional interest is returned to the buyer when the issuer makes the first interest payment. You may hear that a bond yield dated date
by 10 basis points bpswhich means that it changed by 0.