Brokered CD sale calculator: price under par, accrued interest and holding
Selling a brokered CD early means a buyer names the price. Enter your CD and see what you get now and what holding would have paid.
How it works: a brokered CD can be sold before it matures. A buyer sets the price. The price is a percent of face. A buyer also pays you the interest the CD earned since its last interest date. That is accrued interest. Your cash is the price, plus accrued interest, minus the fee. Holding is different. You get par back, plus the interest to the next date. This page compares the two on the same day. Holding pays later, and selling pays now. Interest is the face times the rate times the days, divided by the days in the year. Each amount is rounded to the cent.
What a price under par costs
A price of 98.5 means $98.50 for every $100 of face. The $1.50 is gone for good. When rates rise, buyers pay less for an older CD with a lower rate. That is the usual reason for a price under par. The interest line is the part people forget. The buyer pays it to you, so it is not extra profit. You would have earned it by holding too.
Read the whole line
The sale price is not the check. Add the accrued interest. Take off the fee. Then ask what holding would have paid. A bond works the same way. See what a bond is and how an interest rate works. The sale also has a settlement date, so the cash arrives after the trade.
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