ACCRINT
The ACCRINT function calculates the accrued interest for a security that pays periodic interest. It is used in financial analysis and accounting to determine interest earned on bonds, notes, or other fixed-income investments.
Syntax 🔗
=ACCRINT(Issue, Settlement, Rate, Par, [Basis], [Calc method])
Issue | Date of the security's issue. |
Settlement | Date when the security was purchased. |
Rate | Annual coupon rate of the security. |
Par | The security's par value. |
Basis (Optional) | The day-count basis to use. Defaults to 0 if omitted. |
Calc method (Optional) | The method to use for calculating the accrued interest. Defaults to TRUE if omitted. |
About ACCRINT 🔗
Use the ACCRINT function in Excel to calculate the accrued interest on bonds. This function is useful when dealing with fixed-income securities. To use ACCRINT, input details such as the bond's issue date, first interest payment date, and settlement date. You also need to provide the annual interest rate, the bond's face value, and the frequency of interest payments per year.
ACCRINT allows you to customize the calculation with the [basis] parameter, which lets you select a day counting method, and the [calc_method] parameter, where you can choose between a full-period or prorated interest calculation.
This function is particularly helpful for bonds with irregular interest periods, as it calculates the accrued interest from the issue to the settlement date. ACCRINT provides a precise measure of accrued interest, assisting you in making informed financial decisions.
Examples 🔗
Suppose you have purchased a bond with a par value of $10,000, an annual coupon rate of 5%, and it pays interest semi-annually. The bond was issued on January 1, 2022, and you purchased it on March 1, 2022. You want to calculate the accrued interest on July 31, 2022. The ACCRINT formula would be:
=ACCRINT("01/01/2022", "01/01/2022", "03/01/2022", 0.05, 10000, 2)
This will return the accrued interest amount for the specified bond between March 1, 2022, and July 31, 2022.
Suppose you have a bond with a par value of $5,000, an annual coupon rate of 3%, and it pays interest quarterly. The bond was issued on October 1, 2021, and you purchased it on December 15, 2021. You want to calculate the accrued interest on February 28, 2022, using the actual/actual day-count basis. The ACCRINT formula would be:
=ACCRINT("10/1/2021", "10/1/2021", "12/15/2021", 0.03, 5000, 4, 1)
This will return the accrued interest amount for the specified bond between December 15, 2021, and February 28, 2022, using the actual/actual day-count basis.
Notes 🔗
The ACCRINT function requires dates to be entered as valid Excel date values or as references to cells that contain valid date values. It assumes coupon payments follow a regular schedule without irregular payment dates. Adjust the function parameters and arguments based on your bond or security details.
Questions 🔗
The ACCRINT function calculates the accrued interest using the following formula:
Accrued Interest = (Rate * Par * Days) / (Frequency * Basis)
Can I use the ACCRINT function for securities with irregular payment dates?No, the ACCRINT function assumes that the coupon payments are made on a regular schedule and do not have irregular payment dates. It is designed for securities with fixed coupon payment periods.
Can I specify a different day-count basis for the ACCRINT function?Yes, you can specify a different day-count basis using the optional Basis argument. The default value is 0, which represents the 30/360 day-count basis. You can specify other day-count bases, such as actual/actual or actual/360, by providing the appropriate numeric code as the Basis argument.
Yes, you can specify a different method for calculating accrued interest using the optional Calc method argument. The default value is 0, which represents the US (NASD) 30/360 method. You can specify other methods, such as actual/actual or European 30/360, by providing the appropriate numeric code as the Calc method argument.
Related functions 🔗
ACCRINTM
COUPDAYS
COUPDAYSNC
COUPNCD
COUPNUM
COUPPCD
MDURATION
YIELD
YIELDDISC
YIELDMAT