Re: AccrInt

Thank you.

Then why did they put frequency in?  In the equation def. frequency does not do anything. Should it?  Nor for that matter is first_Interest used either.


"John S. Dey" wrote:

The definition given is a poor one.  Accrued interest also applies to
new issues and interest is accrued daily. With re to the equation
definition, I think it is correct:  The accrued interest is calculated
as number of days from dated date on the obligation or the date of the
last interest payment over the number of days in the year all times the
interest rate (expressed on an annual basis).  In using the 30/360 basis
for municipal securities I believe Excel miscalculates when date periods
span months with 31 days.

Phillip J Shelton wrote:
> This is the definition of accrued  interest from a web glossary.
> > accrued interest
> >       Interest that is due on a bond or other fixed income security since the last interest payment was made. This often occurs for bonds purchased
> >       on the secondary market, since bonds usually pay interest every six months, but the interest is accrued by the bondholders every month.
> >       When a bond is sold, the buyer pays the seller the market price plus the accrued interest, for which the buyer will be reimbursed at the end of
> >       the six-month period. Accrued interest is calculated on a 30-day month for corporate bonds and municipal bonds, and on
> >       actual-calendar-days for Government Bonds. Income bonds, bonds in default and zero-coupon bonds trade without accrued interest.
> >
> Here is the function definition as gnumeric has it.
> >        N_("@FUNCTION=ACCRINT\n"
> >            "@SYNTAX=ACCRINT(issue,first_interest,settlement,rate,par,"
> >            "frequency[,basis])\n"
> >            "@DESCRIPTION="
> >            "ACCRINT calculates the accrued interest for a "
> >            "security that pays periodic interest.  The @rate is the annual "
> >            "rate of the security and @par is the par value of the security. "
> >            "@basis is the type of day counting system you want to use:
> >
> I was thinking that issue should be the date of the last interest
> payment, settlement should be the date of the next interest payment,
> first_interest should be the date that you are accuring on, and
> frequency would be the number of interest payments in the year.

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