Accrintm Function

Purpose

Return value

Syntax

=ACCRINTM(id,sd,rate,par,[basis])

• id - Issue date of the security.
• sd - Settlement date of the security.
• rate - Annual coupon rate.
• par - Par value of security.
• basis - [optional] Day count basis (see below, default =0).

Using the ACCRINTM function

In finance, bonds prices are quoted “clean”. The “clean price” of a bond excludes any interest accrued since the issue date, or most recent coupon payment. The “dirty price” of a bond is the price including accrued interest. The ACCRINTM function can be used to calculate accrued interest for a bond that pays periodic at maturity (i.e. only pays interest one time).

Date configuration

By default, ACCRINTM will calculate accrued interest from the issue date to the settlement date. If you want to calculate total interest from the issue date to the maturity date, supply maturity date instead of settlement date.

Example

In the example shown, we want to calculate accrued interest for a bond with a 5% coupon rate. The issue date is 5-Apr-2016, the settlement date is 1-Feb-2019, and maturity date is 15-Apr-2026. We want accrued interest from the issue date to the settlement date. The formula in F5 is:

=ACCRINTM(C7,C8,C6,C5,C10)

With these inputs, the ACCRINTM function returns $141.11, with currency number format applied.

Entering dates

In Excel, dates are serial numbers . Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly inside a function, you can use the DATE function . To illustrate, the formula below has all values hardcoded. The DATE function is used to supply each of the two required dates:

=ACCRINTM(DATE(2016,4,5),DATE(2019,2,1),0.05,1000,0)

Basis

The basis argument controls how days are counted. The ACCRINTM function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis. This article on wikipedia provides a detailed explanation of available conventions.

Notes

• In Excel, dates are serial numbers .
• All dates, and basis , are truncated to integers.
• If dates are invalid (i.e. not actually dates) ACCRINTM returns #VALUE!
• ACCRINTM returns #NUM when: issue date >= settlement date rate < 0 or par <= 0 Basis is out-of-range

Purpose

Return value

Syntax

=AMORDEGRC(cost,purchase,first,salvage,period,rate,[basis])

• cost - Asset cost.
• purchase - Asset purchase date.
• first - First period end date.
• salvage - Asset salvage value.
• period - Period for which to calculate depreciation.
• rate - Rate of depreciation.
• basis - [optional] Day count basis (default =0).

Using the AMORDEGRC function

The Excel AMORDEGRC function returns the depreciation for each accounting period by using a depreciation coefficient. This function is provided for the French accounting system. Depreciation is prorated based on the date an asset is purchased in the first period. AMORDEGRC is similar to AMORLINC, except AMORDEGRC applies a depreciation coefficient in the calculation based on life of asset.

Example

In the example shown, an asset was purchased on June 30, 2019 at an initial cost of $10,000. The end of the first period is December 31, 2019 and the depreciation rate is 20% per year. The salvage value is $1000, and the basis is European 30/360. The formula in F7, copied down the table is:

=AMORDEGRC($C$5,$C$6,$C$7,$C$8,E7,$C$9,$C$10)

Notice with the exception of the period numbers in column E, the other arguments use absolute references to prevent changes when copying.

For period zero, the depreciation is prorated based on a purchase date midway through the year, so the AMORLINC function returns $1,000. The full table of results looks like this:

Depreciation coefficient

The depreciation coefficient applied by the AMORDEGRC function is determined by asset life, where asset life = 1/ rate .

Entering dates

In Excel, dates are serial numbers . Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly inside a function, you can use the DATE function . To illustrate, the formula below has all values hardcoded, and the DATE function is used to supply each of the two required dates:

=AMORDEGRC(10000,date(2019,6,30),date(2019,12,31),1000,3,0.2,4)

Note the above formula returns depreciation in period 3.

Basis

The basis argument controls how days are counted. The DISC function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis. This article on wikipedia provides a detailed explanation of available conventions.

Notes

• AMORDEGRC will return #VALUE if any dates are invalid.
• AMORDEGRC returns #NUM if: cost <= salvage rate <= 0 basis is not 0-4 asset life is between 0-1, 1-2, 2-3, 3-4, or 4-5