The ACCRINT function in Google Sheets is a valuable tool for calculating the accrued interest on a security that pays periodic interest. This function aids investors in assessing their investment returns more accurately, ensuring they have a clear understanding of interest earned over a specified timeframe.

Syntax

ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis])

• issue: The date when the security is issued.
• first_interest: The date of the first interest payment.
• settlement: The date on which the security is settled.
• rate: The annual interest rate of the security.
• par: The principal amount of the security.
• frequency: The number of interest payments in a year (1 for annual, 2 for semiannual, 4 for quarterly).
• [basis]: (Optional) The day count basis to use. Defaults to 0 if not specified.

Example #1

ACCRINT(DATE(2021,1,1), DATE(2021,6,1), DATE(2021,7,1), 0.05, 1000, 2)

This formula calculates the accrued interest for a bond issued on January 1, 2021, with a semiannual interest payment, yielding $25.00 by July 1, 2021.

Example #2

ACCRINT(DATE(2020,1,15), DATE(2020,7,15), DATE(2021,1,15), 0.04, 2000, 1)

In this case, the function computes accrued interest on a security paying interest annually, which amounts to $80.00 by the settlement date of January 15, 2021.

Example #3

ACCRINT(DATE(2021,3,1), DATE(2021,6,1), DATE(2021,8,1), 0.06, 1500, 4)

Here, it calculates the accrued interest for a quarterly paying bond, resulting in $22.50 on August 1, 2021.

Error handling

• VALUE!: One or more of the arguments are of the wrong data type, such as non-date values where dates are expected.
• NUM!: The calculated value for the accrued interest cannot be represented in numeric form, possibly due to an invalid frequency.
• NAME?: The function name is misspelled or not recognized by Google Sheets.

Conclusion

The ACCRINT function is an indispensable resource for investors seeking to accurately gauge the interest accrued on securities with periodic payments. By understanding its syntax and potential errors, users can leverage this function effectively to make informed financial decisions.