Financial: Returns the accrued interest for a security that pays interest at maturity
The ACCRINTM function in Excel is used to calculate the accrued interest for a security that pays interest at maturity (not periodically).
MS Excel provides two functions for calculating accrued interest: ACCRINT and ACCRINTM. ACCRINT helps calculate the interest that is paid by the issuer periodically. On the other hand, ACCRINTM calculates the interest that is paid at maturity, or the lump sum interest when a security expires/matures.
The ACCRINTM function uses the following arguments:
Issue (required argument) – This is the security’s issue date. If it is not an integer, it will be truncated.
Settlement (required argument) – The security’s maturity date, which is when the security expires.
Rate (required argument) – This is the security’s annual coupon rate.
Par (required argument) – The security’s par value. If omitted, then ACCRINTM function will take the par value as $1,000.
Basis (optional argument) – This is the kind of day count that is used for calculating the interest on a given security. If we omit the basis argument, it is set to 0. Basis can be any of the following values:
Formula
=ACCRINTM(issue, settlement, rate, par, [basis])