How to Use the ACCRINTM Function in Excel
Today, we’ll delve into a useful financial function available in both Microsoft Excel and Google Sheets known as ACCRINTM. This function is designed to calculate the accrued interest for a security that pays interest upon maturation, making it particularly valuable for tracking investments that have a specific maturity date.
Understanding the ACCRINTM Function
The ACCRINTM function’s syntax is as follows:
ACCRINTM(issue, settlement, rate, par, [basis])- issue: The issue date of the security.
- settlement: The settlement date of the security.
- rate: The annual interest rate of the security.
- par: The par value of the security.
- basis: (Optional) The day count basis for interest calculation. If not specified, the default is 0.
Examples of Using the ACCRINTM Function
Consider a scenario where you own a security with the following characteristics:
- Issue Date: 01-Jan-2022
- Settlement Date: 15-Apr-2022
- Annual Interest Rate: 5%
- Par Value: $1,000
To calculate the accrued interest, you would use the ACCRINTM function as follows:
=ACCRINTM("01-Jan-2022", "15-Apr-2022", 0.05, 1000, 0)This function call computes the accrued interest for the specified duration, interest rate, and par value.
If a different day count basis is required, simply modify the “basis” parameter. For instance, using “basis 1” will calculate interest based on the actual days in the year.
The ACCRINTM function allows for precise calculation of accrued interest for securities at maturity. This facilitates accurate financial analysis and reporting, ensuring you stay on top of the financial performance of your investments.
Other functions
Returns the accrued interest for a security that pays periodic interest
Returns the depreciation for each accounting period by using a depreciation coefficient
Returns the depreciation for each accounting period
Returns the number of days from the beginning of the coupon period to the settlement date
Returns the number of days in the coupon period that contains the settlement date
Returns the number of days from the settlement date to the next coupon date
Returns the next coupon date after the settlement date
Returns the number of coupons payable between the settlement date and maturity date
Returns the previous coupon date before the settlement date
Returns the cumulative interest paid between two periods
Returns the cumulative principal paid on a loan between two periods
Returns the depreciation of an asset for a specified period by using the fixed-declining balance method
Returns the depreciation of an asset for a specified period by using the double-declining balance method or some other method that you specify
Returns the discount rate for a security
Converts a dollar price, expressed as a fraction, into a dollar price, expressed as a decimal number
Converts a dollar price, expressed as a decimal number, into a dollar price, expressed as a fraction
Returns the annual duration of a security with periodic interest payments
Returns the effective annual interest rate
Returns the future value of an investment
Returns the future value of an initial principal after applying a series of compound interest rates
Returns the interest rate for a fully invested security
Returns the interest payment for an investment for a given period
Returns the internal rate of return for a series of cash flows
Calculates the interest paid during a specific period of an investment
Returns the Macauley modified duration for a security with an assumed par value of $100
Returns the internal rate of return where positive and negative cash flows are financed at different rates
Returns the annual nominal interest rate
Returns the number of periods for an investment
Returns the net present value of an investment based on a series of periodic cash flows and a discount rate
Returns the price per $100 face value of a security with an odd first period
Returns the yield of a security with an odd first period
Returns the price per $100 face value of a security with an odd last period
Returns the yield of a security with an odd last period
Returns the number of periods required by an investment to reach a specified value
Returns the periodic payment for an annuity
Returns the payment on the principal for an investment for a given period
Returns the price per $100 face value of a security that pays periodic interest
Returns the price per $100 face value of a discounted security
Returns the price per $100 face value of a security that pays interest at maturity
Returns the present value of an investment
Returns the interest rate per period of an annuity
Returns the amount received at maturity for a fully invested security
Returns an equivalent interest rate for the growth of an investment
Returns the straight-line depreciation of an asset for one period
Returns the sum-of-years' digits depreciation of an asset for a specified period
Returns the bond-equivalent yield for a Treasury bill
Returns the price per $100 face value for a Treasury bill
Returns the yield for a Treasury bill
Returns the depreciation of an asset for a specified or partial period by using a declining balance method
Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic
Returns the net present value for a schedule of cash flows that is not necessarily periodic
Returns the yield on a security that pays periodic interest
Returns the annual yield for a discounted security; for example, a Treasury bill
Returns the annual yield of a security that pays interest at maturity