ACCRINTMfunction calculates the accrued interest for a security that pays interest at maturity. It returns the accrued interest between the issue date and the maturity date of a security. This function is most commonly used in financial analysis for bonds and other debt securities.
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- Examples of using
ACCRINTMformula not working?
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ACCRINTM formula with the syntax shown below, it has 3 required parameters and 2 optional parameters:
- issue (required):
The date when the security was issued, in date, datetime or text format. Text format should be enclosed in double quotes and formatted as either "YYYY-MM-DD" or "MM/DD/YYYY"
- maturity (required):
The date when the security matures, in date, datetime or text format. Text format should be enclosed in double quotes and formatted as either "YYYY-MM-DD" or "MM/DD/YYYY"
- rate (required):
The annual coupon rate of the security, expressed as a decimal
- redemption (optional):
The redemption value of the security per $100 face value. If omitted, the redemption value is assumed to be $100.
- day_count_convention (optional):
The day count convention to use for the calculation. If omitted, the default value of 0 (or US NASD 30/360) is used. Options for this parameter include: 0 = US NASD 30/360, 1 = Actual/actual, 2 = Actual/360, 3 = Actual/365, 4 = European 30/360.
ExamplesHere are a few example use cases that explain how to use the
ACCRINTMformula in Google Sheets.
Calculating accrued interest for a bond
Investors can use the
ACCRINTM function to calculate the amount of interest that has accrued on a bond between the issue date and the maturity date, based on the annual coupon rate.
Comparing bonds with different maturity dates
Investors can use the
ACCRINTM function to compare the accrued interest on bonds with different maturity dates to determine which bond is more profitable to hold.
Determining tax liability for bond investments
Investors can use the
ACCRINTM function to calculate the amount of taxable interest income to report on their tax returns for bond investments that pay interest at maturity.
ACCRINTMnot working? Here are some common mistakes people make when using the
ACCRINTMGoogle Sheets Formula:
Missing or incorrect arguments
One of the most common mistakes is not providing all the required arguments or providing incorrect arguments. Make sure to check the formula syntax and provide all the required arguments with the correct data types.
Incorrect date format
The issue and maturity arguments should be dates in the format of YYYY-MM-DD or references to cells containing dates. Make sure the dates are correctly formatted and recognized by Google Sheets.
Incorrect interest rate format
The rate argument should be a decimal number or a reference to a cell containing a decimal number representing the annual interest rate. Make sure the rate is formatted correctly and expressed as a decimal.
Incorrect day count convention
The day_count_convention argument is optional but if provided, it should be one of the recognized day count conventions such as 30/360 or actual/360. Make sure to provide a valid day count convention or leave this argument blank.
Redemption value not provided
The redemption argument is optional but if provided, it should be the redemption value per $100 face value of the security. Make sure to provide a valid redemption value or leave this argument blank if the security does not have a redemption value.
The following functions are similar to
ACCRINTM or are often used with it in a formula:
ACCRINTfunction calculates the accrued interest of a security that pays periodic interest. It is commonly used in financial analysis to determine the amount of interest earned but not yet paid on a security. The function takes into account the issue date, first payment date, settlement date, rate, redemption value, and frequency of interest payments. The result is the accrued interest at the settlement date.
COUPDAYBSfunction calculates the number of days from the beginning of the coupon period to the settlement date for a security that pays periodic interest. It is commonly used in financial calculations to determine the accrued interest between the last coupon payment and the settlement date.
COUPDAYSfunction returns the number of days in the coupon period that contains the settlement date. This function is commonly used in financial analysis to calculate the number of days between two dates for interest rate calculations.
DURATIONfunction calculates the Macauley duration of a security paying periodic interest, such as a US Treasury Bond, based on expected yield. The Macauley duration is a measure of the sensitivity of the price of the security to changes in interest rates. This function is commonly used in finance and investment analysis.
The YIELD function calculates the yield of a security that pays periodic interest. The yield is the annualized percentage rate returned on the bond, assuming the bond is held until maturity. This function is commonly used in finance and investment analysis.
You can learn more about the
ACCRINTM Google Sheets function on Google Support.