What is ACCRINTM function in Excel?
ACCRINTM function is one of the Financial functions in Microsoft Excel that returns the accrued interest for a security that pays interest at maturity.
Syntax of ACCRINTM function
ACCRINTM(issue, settlement, rate, par, [basis])
The ACCRINTM function syntax has the following arguments:
- Issue: The security’s issue date.
- Settlement: The security’s maturity date.
- Rate: The security’s annual coupon rate.
- Par: The security’s par value. If you omit par, ACCRINTM uses $1,000.
- Basis(Optional): The type of day count basis to use.
|Basis||Day count basis|
|0 or omitted||US (NASD) 30/360|
ACCRINTM formula explanation
- Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
- Issue, settlement, and basis are truncated to integers.
- If issue or settlement is not a valid date, ACCRINTM returns the #VALUE! error value.
- If rate ≤ 0 or if par ≤ 0, ACCRINTM returns the #NUM! error value.
- If basis < 0 or if basis > 4, ACCRINTM returns the #NUM! error value.
- If issue ≥ settlement, ACCRINTM returns the #NUM! error value.
- ACCRINTM is calculated as follows:ACCRINTM = par x rate x A/Dwhere:
- A = Number of accrued days counted according to a monthly basis. For interest at maturity items, the number of days from the issue date to the maturity date is used.
- D = Annual Year Basis.
Example of ACCRINTM function
Steps to follow:
1. Open a new Excel worksheet.
2. Copy data in the following table below and paste it in cell A1
Note: For formulas to show results, select them, press F2 key on your keyboard and then press Enter.
You can adjust the column widths to see all the data, if need be.
|3||Actual/365 basis (see above)|
|=ACCRINTM(A2,A3,A4,A5,A6)||The accrued interest for the terms above.||20.54794521|