In this article, we will learn about how to use the ACCRINTM function in Excel.
ACCRINTM function calculates the amount which is the interest amount at maturity paid once. The mathematical formula to get the amount is shown in the image below.
A = Number of accrued days counted according to a monthly basis.
D = basis (annual)
The ACCRINTM function returns the one interest amount for interest amount at maturity giving input as syntax shown below.
|=ACCRINTM(issue, settlement, rate, par, [basis])|
issue : Issue date of the security
settlement : Settlement date of the security
rate - Interest rate of security.
par - Par value of security.
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 ACCRINTM function over values and significance with the numbers.
Use the formula:
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 $375.00 interest value paid once 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:
Now as the issue date value is updated (5th March) using the DATE function the ACCRINTM interest amount decreases to $366.67 for the same par value that pays one time interest.
Here are some observational notes using the ACCRINTM function shown below.
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