From Munex.com Support This value is calculated by comparing the initial purchase price of the insured maturities to the present value of the uninsured debt service for that maturity. If the initial purchase price for a maturity in the insured scenario is greater than the present value of all future debt service payments for that maturity in the uninsured scenario, this means the value of insuring is negative and insuring the bonds would give a greater benefit to the insurance company than to the bond issuer. Munex calculates this value of insuring for each maturity in an series, the sum of which gives you a measure of the net value of insuring a series of bonds. The value of insuring maturity V = (A-B) where A = Initial cost of insured maturityN = issuance value +
accrued interest - insurance cost.
B = PV of uninsured debt service for maturity V[N] for N = 1,2,…X = Final maturity.The Comparison of Insured vs. Uninsured to Call report will give you a
similar calculation as above, except the uninsured D/S to maturity payments are
discounted back at the uninsured yield © Copyright 2018 by Munex.com |