ACCRINT

[Mike]

When using the ACCRINT function, will it only determine
accrued interest as of TODAY, or can it be used to
determine the amount of accrued interest on some different
date that the user can enter? As always, much thanks in
advance.

Mike

Naperville, IL

 

[Norman Harker]

Hi Mike!

Take a look at the example in Help. There's nothing that links ACCRINT
with TODAY() unless you use TODAY() as one of the arguments.

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

 

[Guest]

I must be a little confused. I don't want to use TODAY()
as an argument, but I want to be able to return the
accrued interest as of a different day. Maybe I'm mistaken
about what the function returns. I thought it returned the
accrued interest as of today. Thanks for your help

Mike

 

[Norman Harker]

Hi Mike!

I think you're confused as to what the function returns.

What is it that you want to calculate?

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

 

[Guest]

Hi Norman!

Enlighten me! What does the function return? I'd like to
be able to return the accrued interest as of some given
date. Thanks again

Mike

 

[Guest]

Hi Dan!

I want to return the accrued interest as of some given
date, not necessarily today. What does the function return?
Thanks again,

Mike

 

[Norman Harker]

Hi Mike!

It calculates the interest that has accrued between the issue date of
the security and the settlement date.

In the example given by Help:

Issue date 1-Mar-2008
First Interest Date 31-Aug-2008
Settlement date 1-May-2008
Coupon Rate 10%
Par Value 1000
Frequency 2 [Semi annual]
Basis 0 [30/360 basis]

Number of days between 1-Mar-2008 and 1-May-2008 is 60 (Note 30/360
assumption)
Number of days in Half year 180 (Note 30/360 assumption)
Interest per half year 50

=60/180*50
Returns 16.66666667
Same as amount returned by ACCRINT function

If you want to calculate interest that has accrued since the last
payment of interest on a bond, you could use the same basis of
calculation:

Days Since Last Payment/Total Days Between Payment * Amount of
Interest.

But in calculating the days use the 30/360 assumption.

I'll admit to not liking these calculations because of the
simplifications they involve. I'd use compound interest based
calculations using actual days. With computers, it's not the rocket
science that it used to be.
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

 

[Guest]

Thanks Norman:

I suppose if I want to figure the accrued between any two
given dates, I can just substitute the dates I need, the
function probably won't know the difference. I agree with
you on the 360 vs. 365 convention but since most corporate
bonds actually pay on the 360 convention, using 365 would
return information that is precise, but incorrect at the
same time.

Mike

-----Original Message-----
Hi Mike!

It calculates the interest that has accrued between the issue date of
the security and the settlement date.

In the example given by Help:

Issue date 1-Mar-2008
First Interest Date 31-Aug-2008
Settlement date 1-May-2008
Coupon Rate 10%
Par Value 1000
Frequency 2 [Semi annual]
Basis 0 [30/360 basis]

Number of days between 1-Mar-2008 and 1-May-2008 is 60 (Note 30/360
assumption)
Number of days in Half year 180 (Note 30/360 assumption)
Interest per half year 50

=60/180*50
Returns 16.66666667
Same as amount returned by ACCRINT function

If you want to calculate interest that has accrued since the last
payment of interest on a bond, you could use the same basis of
calculation:

Days Since Last Payment/Total Days Between Payment * Amount of
Interest.

But in calculating the days use the 30/360 assumption.

I'll admit to not liking these calculations because of the
simplifications they involve. I'd use compound interest based
calculations using actual days. With computers, it's not the rocket
science that it used to be.
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

Hi Norman!

Enlighten me! What does the function return? I'd like to
be able to return the accrued interest as of some given
date. Thanks again

.