MicroStrategy ONE

Accrint (Accrued Interest)

Accrued interest is interest that has accumulated over a period of time, but has not yet been paid. This function returns the amount of accrued interest on a security that pays periodic interest.

Syntax

Accrint <Par = 1000, Basis> (Issue, FirstInterest, Settlement, Rate, Frequency)

Where:

Issue is the issue date.

FirstInterest is the first date on which interest is accrued.

Settlement is the settlement date. This is the date, after issue, on which the security is traded.

Rate is the annual coupon rate.

Par is a parameter that indicates the par value. The default, and only valid value is 1000.

Frequency is the number of coupon payments per year. The valid values are, 1, 2, and 4 where annual payments =1, semiannual payments =2, and quarterly payments =4.

Basis is a parameter that indicates the time-count basis to be used. The default value for Basis is 0, which is typically used by American agencies and assumes 30-day months and 360-day years (30/360). Possible values for this parameter are listed in the following table.

Basis value Application

0 (30/360)

Assumes 30 days in each month, 360 days in each year.

1 (actual/actual)

Assumes actual number of days in each month, actual number of days in each year.

2 (actual/360)

Assumes actual number of days in each month, 360 days in each year.

3 (actual/365)

Assumes actual number of days in each month, 365 days in each year.

4 (30/360)

Used by European agencies, assumes the same values as “0” for American institutions.

Expression

Where:

Ai is the number of accrued days for the ith quasi-coupon period within an odd period

NC is the number of quasi-coupon periods that fit an odd period (if this period contains a fraction, that fraction is rounded up to the nearest integer)

NLi is the normal length, in days, of the ith quasi-coupon period within an odd period

Usage Notes

If Issue, FirstInterest, Settlement, or Frequency is not an integer, it is truncated

The engine returns an empty cell if:

  • Issue, FirstInterest, or Settlement is not a valid date
  • Par ¹ 1000
  • Issue ³ Settlement
  • Frequency is a value other than 1, 2, or 4

  • The Issue date, the FirstInterest date and the Settlement date should be included within single quotations in the expression for the expression to be considered as a valid expression

Example

This example displays the expression built using Accrint for a treasury bond with the following terms:

  • March 22, 2003, issue date
  • June 20, 2003, first interest date
  • September 16, 2003, settlement date
  • 10.0 percent coupon
  • $1,000 par value
  • Frequency is semiannual
  • Basis is 30/360

The accrued interest is defined as:

Accrint <Par=1000, Basis=0> (‘3/22/2003’,’9/16/2003’,’6/20/2003’,0.1,2) {~+}