In this article, we will learn about how to use the ACCRINT function in Excel.
ACCRINT function calculates the amount which is the periodic interest amount for a security that pays periodic interest. The mathematical formula to get the amount is shown in the image below.
Ai = accrued days for the ith quasi-coupon period within odd period
NC = number of quasi-coupon periods that fit in odd period.
NLi = normal length in days of the quasi-coupon period within odd period.
The ACCRINT function returns the periodic interest amount for a security that pays periodic interest giving input as syntax shown below.
|=ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])|
issue : Issue date of the security
first_interest : first interest date of the security
settlement : Settlement date of the security
rate - Interest rate of security.
par - Par value of security.
frequency - payments per year
basis - [optional] Day count basis. Default is 0 and for see the below table.
|Basis||Day count basis|
|0||US (NASD) 30 / 360|
|1||actual / actual|
|2||actual / 360|
|3||actual / 365|
|4||European 30 / 360|
All of these might be confusing to understand. So, let's test this formula via running it on the example shown below. Here we will perform the ACCRINT function over values and significance with the numbers.
Use the formula:
|=ACCRINT(C2, C3, C4, C5, C6, C7, C8, FALSE)|
Here all the arguments to the function is given as cell reference. Now Press Enter to get the interest amount for security.
The function returns $125.00 periodic interest value for the par value $5000.
Using the DATE function:
Dates in the formula must be entered using cell reference or DATE function. Excel date format creates #VALUE! error while computing results. Use the cell reference or DATE function in excel while taking date as input to the function
Use the formula:
|=ACCRINT( DATE(2019,3,5), C3, C4, C5, C6, C7, C8, TRUE)|
Now as the issue date value is updated (5th March) using the DATE function the ACCRINT interest amount decreases to $116.67 for the same par value that pays periodic interest.
Here are some observational notes using the ACCRINT function shown below.
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