Accrued Interest Rate

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Imported from previous forum

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Hi all,

I’m searching for an exact definition of Tag 158, Accrued Interest Rate.
I did find this link:
http://www.fixprotocol.org/specifications/fix4.4fiximate/field_description.html

Which uses the following definition:

“Accrued Interest Rate is the annualized Accrued Interest amount divided by the purchase price of the bond.”

This is nice as far as it goes, but nothing is clearer than an example!

One reason I ask is we have a field in our application called Accrued Interest Percent. This is given by a very simple calculation:

Accrued Interest Percent = AccruedInterestAmt (159) / OrderQty (38) * 100

eg, say I buy 150,000 of a bond and end up owing $7000 in Accured Interest. Then the Accrued Interest Percent =

7000 / 150000 * 100 = 4.66%

I’m trying to understand if the Accrued Interest Rate in the FIX specification is the same value, is closely related, or is something else entirely. Can someone help me by working up an example showing what’s expected in this field? I’d rather use a User Defined Tag than incorrectly use 158 for something other than it’s intended purpose.

Thanks.