The ACCRINTM function calculates the accrued interest for a security that pays interest at maturity. The function arguments are:
issue |
is the issue date of the security, expressed as a date code |
settlement |
is the maturity date of the security, expressed as a date code |
rate |
is the annual coupon (interest) rate of the security |
par |
is the par or base value of the security (if par is omitted, ACCRINTM uses $1000) |
basis |
is the type of day count basis used, where basis is one of the following: |
Basis |
Day count basis |
0 |
US 30/360 |
1 |
Actual/actual |
2 |
Actual/360 |
3 |
Actual/365 |
4 or omitted |
European 30/360 |
The function is calculated using the formula
ACCRINTM = par * rate * (A / D)
where A is the number of days accrued, counted according to a monthly basis, and D is the annual year basis.
ACCRINTM calculates non-compound (or simple) interest over the security’s period.
For example, you have been issued with a coupon worth $10,000 on July 1st 1997 that comes to maturity on September 30th 1997; the coupon’s annual interest rate is 12%; and you want to know what the interest will be on September 30th when the coupon achieves maturity. Use the formula:
ACCRINTM(35611, 35702, 0.12, 10000, 3)
to get an interest payment of $299.18.
See also: