With this formula , you can simply Calculate the accrued interest of a security in the case of periodic payments.

The formula is given below :-

=ACCRINT(issue, first_interest, settlement, rate, par, frequency, basis)

Explanation of This formula

In this formula 7 items , you have to noted . Understand these one by one

Issue → is the issue date of the security.
First_interest → is the first interest date of the security.
Settlement → is the maturity date.
Rate → is the annual nominal rate of interest (coupon interest rate).
Par → is the par value of the security.
Frequency → is the number of interest payments per year (1, 2 or 4).
Basis → is chosen from a list of options and indicates how the year is to be calculated.
[Special Note : The basis argument specifies the number of days in the month and in the year assumed for the date calculations. You specify the basis as 0 for the US (or NASD) version of 30 days in a month and 360 days in a year; as 1 for the actual number of days in the month and year; 2 for the actual number of days in the month but 360 days in a year; 3 for the actual number of days in the month and 365 days in a year; and 4 for the European version of 30 days in a month and 360 days in a year. Thanks Stephen L. Nelson for telling about basis in Using Microsoft Excel's Accrued Interest Add-In Functions]

For Example
If you want to calculate the accrued interest on a bond that was issued on March 8, 1999, first paid interest on May 8, 1999, was purchased on June 23, 2000, pays an 10% coupon, shows a \$2,000 par value, pays interest two times a year, and uses the US, or NASD, day-count-basis assumption, you use the following formula:

=ACCRINT("3/8/99","5/8/99","6/23/00",0.08,2000,2,0) .

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