When you invest in a security that pays interest, you can receive your interest payments in one of two ways: periodically, or all at once when the security matures. Excel has a function for each of those cases: ACCRINT to find accrued interest that’s paid periodically, and ACCRINTM to find interest that’s paid in a lump sum when the security matures.
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- Exercise Files
- [Voiceover] When you invest in a security…such as a bond that pays interest on a periodic basis,…you can receive your interest payments…in one of two ways: periodically…or all at once when the security matures.…Excel has a function for each of those two cases:…either to find the accrued interest…for periodic payments or accrued interest…that's all paid at maturity.…In this movie, I will show you how to use…those two functions.…The sample workbook is AccruedInterest_01_06,…and you can find it in the chapter one folder…of the exercise files collection.…
This workbook has two worksheets: Periodic…and At Maturity.…We'll start working with periodic interest payments first.…Rather than describe the arguments separately,…I'll just go ahead and start creating the formula…in cell C12 and describe the arguments as we go along.…So I'll type equal,…and the function that we want to use…to find accrued interest with periodic payments…is A C C R I N T.…And you can see from the abbreviated name…that it looks like accrued interest.…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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