ACCRINTM Excel Formula

If you are about to organize your accounting, you will surely find it very difficult if you attempt to do it manually. It would be much easier if you will use accounting software but that would be too costly. An excellent way to organize your accounting is through the use of Microsoft Excel. Excel features several powerful functions that can make your life easier, particularly when you are working with fundamental financing and accounting tasks. One of those functions is the ACCRINTM function. This function assists to compute for the added interest for a security that pays a maturity interest. ACCRINTM is really useful if you want to organize your payments and investments. So, if you find the function interest to you, then read this article since it will provide you with a basic description of the ACCRINTM function and an example that will surely lead to a better understanding of the topic.

Overview of the ACCRINTM Function in Microsoft Excel

The Excel’s ACCRINTM functions returns a result which is a security’s accrued interest that pays interest at maturity. The syntax of this function is:

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

The Arguments in this Formula are the following:

  • Issue – The date of issuance of the security
  • Settlement – the maturity date of the security
  • Rate – The yearly coupon rate of the security
  • [par] – The par value of the security. If this argument is omitted, it uses the default value which is $1000.
  • [basis] – This is an optional argument. It specifies the basis of day count that will be used in the computation. The following are the possible values of this argument and their meaning:

0 (or omitted) – US (NASD) 30/360

  •   actual/actual
  •   actual/360
  •   actual/365
  •   European 30/360

Note: The settlement and issue dates can be supplied as either of the following:

  • Dates that are returned from other functions or formulas
  • Cell reference which contains the dates

If these dates are supplied as text, there is a possibility that Excel may not understand this because of various settings of date interpretation and date systems.

Even though these dates can also be supplied as serial numbers, this is not advisable because the serial numbers may differ across various computer systems.

You can learn more about the ACCRINT function with the use of this example. For instance, the date of settlement is 31-Dec-10 and the issue date of the security is 01-Jan-10. The yearly coupon rate is 8% and the security’s par value is $10,000. The basis of day count that is used is the US (NASD) 30/360.

If you use the formula of the ACCRINT function and input all the values that were given above, the function will return the result which is $800. You can try this example in your own blank spreadsheet to learn more about the usage of the function.

When you are to key in the necessary formula and keywords, ensure that you supply the values accurately. If you get an error, check the special characters and the spelling that are used in the formula. Ensure that you entered the proper and correct formula so you will not get errors anymore. Once you are already familiar with the ACCRINTM function, it will no longer be difficult for you to work with your accounting tasks.

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