Technically 1.940% is the yield-to-maturity and the "interest" is the 1.875% coupon. But if we model the bond's cash flow as a savings account where we "deposit" the cost of the bond and "withdraw" the coupon every six months, then 1.940% is the "interest rate" the account pays. We can see this in the following table which shows, on row 34, the account balance growing to exactly $1,000 on the bond's maturity date.You will get the coupon of 1.875% of the principal value. Two payments, twice per year. So it starts at $9.375 every six months for each $1000 bond. You paid less than $1000 for that $1000 bond. When it matures you will get the "rest" of the yield to boost it to 1.940%.I bought my allotment at Schwab duriing the auction. As I understand it, with the discount purchase price I will receive 1.940% interest plus inflation rate[.]
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Row Col A Col B Col C Col D Selected Formulas 2 Face value 1,000 3 Settlement 1/30/2026 4 Mature 1/15/2036 5 Yield to maturity 1.940% 6 Coupon 1.875% B6: =INT(B5*800)/800 7 Next coupon date 7/15/2026 B7: =COUPNCD(B3,B4,2,1) 8 Days in period 181 B8: =B7-EDATE(B7,-6) 9 Days after settle 166 B9: =B7-B3 10 Nbr full periods 19 B10: =COUPNUM(B3,B4,2,1)-1 11 Dirty price 99.490953 B11: =100*(-PV(B5/2,B10,B6/2,1,0)+B6/2)/(1+(B5/2)*(B9/B8)) 12 Deposit or Savings Account 13 Date Withdrawal Interest BalanceCode:
14 1/30/2026 994.910 994.910 B14: =B2*(B11/100) 15 7/15/2026 -9.375 8.851 994.385 C15: =D14*(B5/2)*(B9/B8) 16 1/15/2027 -9.375 9.646 994.656 C16: =D15*(B$5/2) 17 7/15/2027 -9.375 9.648 994.929 B17: =-B$2*(B$6/2) 18 1/15/2028 -9.375 9.651 995.205 D18: =D17+B18+C18 19 7/15/2028 -9.375 9.653 995.483 | | | 20 1/15/2029 -9.375 9.656 995.765 | | | 21 7/15/2029 -9.375 9.659 996.048 | | | 22 1/15/2030 -9.375 9.662 996.335 | | | 23 7/15/2030 -9.375 9.664 996.625 | | | 24 1/15/2031 -9.375 9.667 996.917 | | | 25 7/15/2031 -9.375 9.670 997.212 | | | 26 1/15/2032 -9.375 9.673 997.510 | | | 27 7/15/2032 -9.375 9.676 997.811 | | | 28 1/15/2033 -9.375 9.679 998.115 | | | 29 7/15/2033 -9.375 9.682 998.421 | | | 30 1/15/2034 -9.375 9.685 998.731 | | | 31 7/15/2034 -9.375 9.688 999.044 | | | 32 1/15/2035 -9.375 9.691 999.359 | | | 33 7/15/2035 -9.375 9.694 999.678 v v v 34 1/15/2036 -9.375 9.697 1,000.000 Cells B16:D16 Copied Down to Row 34- The table shows amounts in 1/15/2026 dollars, ignoring any inflation adjustments.
- The table uses the following Excel functions: INT, COUPNCD, EDATE, COUPNUM, and PV.
- "Dirty price" on row 11 is the total price one pays including accrued interest. The auction results PDF doesn't show this. Instead it shows the clean price which excludes accrued interest and is called "Unadjusted Price".
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Row Col A Col B Formula in Column B 35 Days before settle 15 B35: =B8-B9 36 Accr int per $100 0.077693 B36: =100*(B6/2)*(B35/B8) 37 Clean price 99.413260 B37: =B11-B36
Statistics: Posted by #Cruncher — Fri Jan 23, 2026 11:16 am — Replies 594 — Views 121199