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ACCRINTM

The ACCRINTM function in Google Sheets is a powerful tool to calculate the accrued interest of a security that pays interest at maturity. This function is commonly used in financial analysis and investment planning.

Function Syntax and Parameters

Syntax: ACCRINTM(issue, maturity, rate, [redemption], [day_count_convention])

Parameters:

  • issue: The date of the security issue.
  • maturity: The maturity date of the security.
  • rate: The nominal interest rate of the security.
  • redemption: [Optional] The redemption value of the security.
  • day_count_convention: [Optional] The day count convention to use for interest calculation.

Step-by-Step Tutorial

  1. Calculating accrued interest:

    • Example: =ACCRINTM(DATE(2022, 1, 1), DATE(2022, 12, 31), 0.05, 1000)
    • Result: The accrued interest for the security is calculated based on the provided parameters.

  2. Using different day count conventions:

    • Example: =ACCRINTM(DATE(2022, 1, 1), DATE(2022, 12, 31), 0.05, 1000, "ACT/360")
    • Result: Accrued interest is calculated using the "ACT/360" day count convention.

Use Cases and Scenarios

  1. Bond Investments: Calculate the accrued interest for bonds.
  2. Certificate of Deposit (CD): Determine the accrued interest for CD investments.
  3. Fixed Income Securities: Calculate interest accrual for fixed income investments.

Related Functions

  • ACCRINT: Calculate the accrued interest of a security that pays periodic interest.
  • COUPDAYS: Calculate the number of days in a coupon period.
  • YIELD: Calculate the yield of a security.

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