The RECEIVED function calculates the amount received at maturity for an investment, such as a bond, based on a discounted rate or yield.

## Syntax ðŸ”—

=RECEIVED(`Settlement`, `Maturity`, `Investment`, `Discount`, `[basis]`)

When you need to determine the amount received upon maturity for an investment that was purchased at a discount to its face value, turn to the RECEIVED function in Excel. This function is particularly useful in financial analysis for assessing the total earnings or returns on discounted investments as they reach maturity. Whether dealing with bonds, notes, or other financial instruments, RECEIVED simplifies the calculation process and provides a clear figure for the amount received upon maturity based on the specified terms and rates. By inputting the settlement date (purchase date), maturity date, initial investment amount, discount rate, and optional day-count basis, you can leverage the power of RECEIVED to obtain an accurate estimate of the final payout for your investment.

## Examples ðŸ”—

Suppose you purchased a bond for \$900 on January 1, 2022, with a maturity date of December 31, 2022. The discount rate for the bond is 6%. To calculate the amount received at maturity, you can use the formula: =RECEIVED("01/01/2022", "12/31/2022", 900, 0.06)

Consider an investment bought on August 15, 2021, for \$1,200 and set to mature on July 31, 2022. The investment has a discount rate of 4.5%. To find out the amount received at maturity, the formula would be: =RECEIVED("08/15/2021", "07/31/2022", 1200, 0.045)

## Notes ðŸ”—

Ensure that the dates provided to the RECEIVED function are in valid Excel date format or reference valid date values in cells. It is essential to accurately input the details of the investment, including the initial investment amount, discount rate, and relevant dates, to obtain correct results from the calculation.

## Questions ðŸ”—

What does the RECEIVED function calculate?

The RECEIVED function computes the amount received at maturity for an investment that was purchased at a discount, based on the provided discount rate and other investment details.

Can the RECEIVED function be used for investments with zero discounts?

Yes, you can still use the RECEIVED function for investments with zero discounts. In such cases, the discount rate would be 0, and the calculation would focus on the initial investment amount and the maturity date to determine the amount received.

How important is the day-count basis in the RECEIVED function?

The day-count basis in the RECEIVED function influences the calculation of the time period between the settlement date and the maturity date. While it is optional, using the appropriate day-count basis ensures accurate results, especially for investments with specific interest accrual methods.

When should I use the RECEIVED function in financial analysis?

Use the RECEIVED function in scenarios where you need to calculate the final amount received at maturity for investments bought at a discount, providing valuable insights into the overall returns on such investments.

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