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Hello Gary,
Thursday, March 6, 2003, 11:30:23 AM, you wrote:
GF> It's tax time again, and I'm trying to figure out how to value an
GF> open Tbill that I held across the end of the year.
GF> The face value of the Tbill was $75000, due 1/24/02. The "Securities
GF> Market Value" according to the statement was $67500. Neither one
GF> seems to jive with my expected P/L for either 2001 or 2002.
GF> What's the MTM value of a Tbill?
GF> Thanks,
GF> Gary
GF> To unsubscribe from this group, send an email to:
GF> realtraders-unsubscribe@xxxxxxxxxxxxxxx
GF> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
I suspect the "Market Value" of $67,500 (which is 90% of the $75,000
face) is how much value your broker is recognizing for margin coverage
purposes. If you know the original cost when purchased,(for example
say $74,500) the difference between cost and face ($500) is the total
earnings upon maturity. Determine the ratio of the number of days
from purchase date to 12/31 to the total days from purchase to
maturity (say it is 45%) then take 45% of $500 and that is the amount
of interest to recognize for mark to market for the current year.
Be sure to subtract the amount next year.
--
Best regards,
Roger mailto:mailrs@xxxxxxxxxx
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