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FIRE'd@51 · 06-05-2007, 11:11 AM

Let me take a stab at it. They do accrue the interest daily. There is no ex-dividend date like with a stock.

I believe the explanation is in the day count. The $0.00435 per share is for 31 days.

(14/31) x $13.05 = $5.89

So I would say you were invested (earning interest) for 14 days. Furthermore, at the end of April the yield on the Prime was 5.10%. At the end of May, it was 5.13%. Presumably, you were invested at a slightly higher rate than the average. That's probably the source of the extra penny.

I had money in the same fund for the full 31 days with no intra-month investments or withdrawals, and my interest agreed to the penny when I multiplied my April 30 balance by 0.00435.

06-05-2007, 11:11 AM	#5
FIRE'd@51 Thinks s/he gets paid by the post Join Date: Aug 2006 Posts: 1,441	Let me take a stab at it. They do accrue the interest daily. There is no ex-dividend date like with a stock. I believe the explanation is in the day count. The $0.00435 per share is for 31 days. (14/31) x $13.05 = $5.89 So I would say you were invested (earning interest) for 14 days. Furthermore, at the end of April the yield on the Prime was 5.10%. At the end of May, it was 5.13%. Presumably, you were invested at a slightly higher rate than the average. That's probably the source of the extra penny. I had money in the same fund for the full 31 days with no intra-month investments or withdrawals, and my interest agreed to the penny when I multiplied my April 30 balance by 0.00435.