It calculates the accrued interest for a security that pays periodic interest.
The syntax of the function is the following:
ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])
issue: The issue date of the security.
first_interest: The 1st interest date of the security.
settlement: The settlement date of the security (It is the date when the security is traded to the buyer and it always comes after the issue date).
rate: The annual coupon rate of the security
par: The security’s par value.
frequency: The number of coupon payments per year (annual=1, semiannual=2, quarterly=4).
[basis]: Optional. The type of day count basis (default is 0).
[calc_method]: Optional. A logical value that specifies the way to calculate the total accrued interest when the date of settlement is later than the date of first_interest. A value of TRUE (1) returns the total accrued interest from issue to settlement. A value of FALSE (0) returns the accrued interest from first_interest to settlement. The default is TRUE .
If the dates entered are not valid dates the function returns a #VALUE! error.
If rate or par are less than or equal to zero the #NUM! error is returned.
If basis is not inside the valid values (between 0 and 4) the #NUM! error is returned.
If the settlement date is before the issue date the #NUM! error is returned
Click on the button to practice using this function, with the help of our Online Assessment Tool:
Here is an example of how to use the ACCRINT function:
In the cell C2, use the proper formula to calculate the accrued interest for a security that pays periodic interest. All the information you need is displayed in the current worksheet.