Tag: Excel Functions

Using the ACCRINTM Function in Excel

Learning about the ACCRINTM Function in Excel

 

 

ACCRINTM

Returns the accrued interest for a security that pays interest at maturity.

 

ACCRINTM(issue; settlement; rate; par; [basis])

 

The ACCRINTM function syntax has the following arguments:

  • Issue Required. The security’s issue date.
  • Settlement Required. The security’s maturity date.
  • Rate Required. The security’s annual coupon rate.
  • Par Required. The security’s par value. If you omit par; ACCRINTM uses $1;000.
  • Basis Optional. The type of day count basis to use.
    BASIS DAY COUNT BASIS
    0 or omitted US (NASD) 30/360
    1 Actual/actual
    2 Actual/360
    3 Actual/365
    4 European 30/360

 

Remarks

 

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default; January 1; 1900 is serial number 1; and January 1; 2008 is serial number 39448 because it is 39;448 days after January 1; 1900.
  • Issue; settlement; and basis are truncated to integers.
  • If issue or settlement is not a valid date; ACCRINTM returns the #VALUE! error value.
  • If rate <= 0 or if par <= 0; ACCRINTM returns the #NUM! error value.
  • If basis < 0 or if basis > 4; ACCRINTM returns the #NUM! error value.
  • If issue = settlement; ACCRINTM returns the #NUM! error value.
  • ACCRINT is calculated as follows:

    • A = Number of accrued days counted according to a monthly basis. For interest at maturity items; the number of days from the issue date to the maturity date is used.
    • D = Annual Year Basis.

 

Interactive Example

 
Change the data in the non-colored cells and see how the result changes in the yellow cells.
 

 

 

ACCRINT Function in Excel

Using the ACCRINT Function in Excel

 

 
Now we are going to learn all about formulas and functions. This is the best way to learn them:
 

 

ACCRINT

Returns the accrued interest for a security that pays periodic interest.

 

ACCRINT(issue; first_interest; settlement; rate; par; frequency; [basis]; [calc_method])

 

The ACCRINT function syntax has the following arguments:

  • Issue Required. The security’s issue date.
  • First_interest Required. The security’s first interest date.
  • Settlement Required. The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
  • Rate Required. The security’s annual coupon rate.
  • Par Required. The security’s par value. If you omit par; ACCRINT uses $1;000.
  • Frequency Required. The number of coupon payments per year. For annual payments; frequency = 1; for semiannual; frequency = 2; for quarterly; frequency = 4.
  • Basis Optional. The type of day count basis to use.
    BASIS DAY COUNT BASIS
    0 or omitted US (NASD) 30/360
    1 Actual/actual
    2 Actual/360
    3 Actual/365
    4 European 30/360
  • Calc_method Optional. A logical value that specifies the way to calculate the total accrued interest when the date of settlement is later than the date of first_interest. A value of TRUE (1) returns the total accrued interest from issue to settlement. A value of FALSE (0) returns the accrued interest from first_interest to settlement. If you do not enter the argument; it defaults to TRUE.

 

Remarks

 

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default; January 1; 1900 is serial number 1; and January 1; 2008 is serial number 39448 because it is 39;448 days after January 1; 1900.
  • Issue; first_interest; settlement; frequency; and basis are truncated to integers.
  • If issue; first_interest; or settlement is not a valid date; ACCRINT returns the #VALUE! error value.
  • If rate = 0 or if par = 0; ACCRINT returns the #NUM! error value.
  • If frequency is any number other than 1; 2; or 4; ACCRINT returns the #NUM! error value.
  • If basis < 0 or if basis > 4; ACCRINT returns the #NUM! error value.
  • If issue = settlement; ACCRINT returns the #NUM! error value.
  • ACCRINT is calculated as follows:

    • Ai = number of accrued days for the ith quasi-coupon period within odd period.
    • NC = number of quasi-coupon periods that fit in odd period. If this number contains a fraction; raise it to the next whole number.
    • NLi = normal length in days of the ith quasi-coupon period within odd period.

 

Interactive Example

Change the data in the non-colored cells and see how the result changes in the yellow cells.