RECEIVED
The RECEIVED function calculates the amount received at maturity for an investment, such as a bond. It is based on a discounted rate or yield.
Syntax 🔗
=RECEIVED(Settlement, Maturity, Investment, Discount, [basis])
Settlement | The date of purchase of the investment. |
Maturity | The date at which the investment matures. |
Investment | The initial amount invested. |
Discount | The discount rate of the investment. |
Basis (Optional) | The day-count basis to use. Defaults to 0 if omitted. |
About RECEIVED 🔗
Use the RECEIVED function in Excel to calculate the amount received at maturity for an investment purchased at a discount to its face value. This function is useful for financial analysis when you need to assess the total earnings or returns on discounted investments upon maturity. It works with bonds, notes, or other financial instruments. Simply input the settlement date (purchase date), maturity date, initial investment amount, discount rate, and optional day-count basis to get an accurate estimate of the final payout for your investment.
Examples 🔗
To calculate the amount received at maturity for a bond purchased for $900 on January 1, 2022, with a maturity date of December 31, 2022, and a discount rate of 6%, use:
=RECEIVED("01/01/2022", "12/31/2022", 900, 0.06)
For an investment bought on August 15, 2021, for $1,200, maturing on July 31, 2022, with a discount rate of 4.5%, calculate the maturity amount with:
=RECEIVED("08/15/2021", "07/31/2022", 1200, 0.045)
Notes 🔗
Ensure the dates you provide to the RECEIVED function are in a valid Excel date format or reference valid date values in cells. 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 🔗
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.