ACCRINTM(issue, settlement, rate, par, basis)

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:

Other financial functions