Methodology

For some mutual funds, the “Daily dividend accrual” value is the portion of the upcoming dividend that has accrued up to the evaluation date, times the number of shares. If the previous dividend paid on, say, the 15th of the month and the evaluation date is the 20th of the month, then five days of […]

This methodology is defined in Treasury Regulation § 20.2031–2 (b) (2), and is used when bonds trade on an exchange with only the “closing selling price” available, instead of the trade’s actual high/low. With EVP Office, when a bond trades, the actual high/low pricing is always available, and therefore the calculation method from Treasury Regulation […]

Yes. Each of the sections below is quoted from the Code of Federal Regulations, Title 26, Chapter 1 (April 1, 2012 Edition). § 20.2031-2 (b) If there is a market for stocks or bonds, on a stock exchange, in an over-the-counter market, or otherwise, the mean between the highest and lowest quoted selling prices on […]

Treasury Regulation § 20.2031-2 (b) 1 addresses inversely weighted means. Means are inversely weighted with respect to the number of trading days between the valuation date and pricing dates. Since markets were closed, for example, from September 11, 2001 through September 14, 2001, the weighting should not apply and means are derived from a straight […]

Series H/HH Bonds are redeemable at par on demand. If a bond is redeemed before final maturity, interest ceases as of the end of the interest payment period preceding redemption. Thus, Series H bonds are valued at par for estate tax purposes, without including any accrued interest.