ACCRINTM

The ACCRINTM function calculates the accrued interest for a security that pays interest at maturity. It is used for analyzing fixed income investments like zero-coupon bonds or Treasury bills. Interest is calculated at maturity rather than periodically.

Syntax 🔗

=ACCRINTM(Issue, Settlement, Rate, Par, [Basis])

Issue Date of the security's issue or start date of the investment period.
Settlement Date when the security was purchased or the end date of the investment period.
Rate Annual interest rate of the security.
Par The security's par value or face value at maturity.
Basis (Optional) The day-count basis to use. Defaults to 0 if omitted.

About ACCRINTM 🔗

Use the ACCRINTM function in Excel to calculate accrued interest for investments like zero-coupon bonds or Treasury bills, where interest is paid at maturity. This function helps you determine the interest earned on such securities, aiding in financial planning and assessment of interest income. To use ACCRINTM, provide details such as the issue date, settlement date, annual interest rate, face value at maturity, and the day-count basis for accurate calculations.

Examples 🔗

Assume you bought a zero-coupon bond with a par value of $5,000 that matures on December 31, 2022, at an annual interest rate of 4%. The bond was issued on January 1, 2022. To calculate the accrued interest on October 15, 2022, you can use the ACCRINTM formula: =ACCRINTM("01/01/2022", "10/15/2022", 0.04, 5000, 0). This formula will give you the accrued interest amount for the bond from January 1, 2022, to October 15, 2022.

Suppose you invested in a Treasury bill with a face value of $10,000 and an annual interest rate of 2.5%, maturing on June 30, 2023. The bill was issued on August 1, 2022. To find the accrued interest on April 1, 2023, using the actual/actual day-count basis, you can use the ACCRINTM formula: =ACCRINTM("08/01/2022", "04/01/2023", 0.025, 10000, 1). This will calculate the accrued interest amount for the Treasury bill from August 1, 2022, to April 1, 2023, using the actual/actual day-count basis.

Notes 🔗

Use the ACCRINTM function to calculate interest accruals for securities that pay interest at maturity. Ensure dates are entered as valid Excel date values or as references to cells with valid date values. Make sure the function parameters match the details of your security or investment for accurate results.

Questions 🔗

How is the accrued interest calculated by the ACCRINTM function?

The ACCRINTM function calculates the accrued interest using the following formula: Accrued Interest = (Rate * Par * Days) / 360

Can I use the ACCRINTM function for securities with periodic interest payments?

No, the ACCRINTM function is specifically designed for securities that pay interest at maturity. For securities with periodic interest payments, you should use the ACCRINT function instead.

Can I specify a different day-count basis for the ACCRINTM function?

Yes, you can specify a different day-count basis using the optional Basis argument. The default value is 0, representing the 30/360 day-count basis. You can choose to use other day-count bases, such as actual/actual or actual/360, by providing the appropriate numeric code as the Basis argument.

ACCRINT
COUPDAYS
COUPDAYSNC
COUPNCD
COUPNUM
COUPPCD
MDURATION
YIELD
YIELDDISC
YIELDMAT

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