MicroStrategy ONE

Accrued interest at maturity

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

Syntax

Accrintm <Par = 1000, Basis> (Issue, Maturity, Rate)

Where:

Issue is the issue date.

Maturity is the maturity date. This is the date on which the coupon expires.

Rate is the annual coupon rate.

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

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:

A is the accrued time (for interest-at-maturity items, the value used is the number of days from issue to maturity)

D is the annual-yield basis

Usage Notes

If Issue or Maturity is not an integer, it is truncated.

The engine returns an empty cell if

  • Issue or Maturity is not a valid date
  • Rate £ 0
  • Par ¹ 1000

  • The Issue date and the Maturity 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 the Accrintm function for a note with the following terms:

  • March 22, 2001, issue date
  • June 20, 2003, maturity date
  • 10.0 percent coupon
  • $1,000 par value
  • Frequency is semiannual
  • Basis is Actual/365

The accrued interest at maturity is defined as:

Accrintm <Par=1000, Basis=3> (‘3/22/2001’,’6/20/2001’,0.1){~+}