How to Calculate Bond Accrued Interest
Determine the day-count convention on your bond.. Confirm the interest rate and payment frequency on your bond.. Find when the most recent coupon payment was made.
Steps
Determine the day-count convention on your bond.
Determine the day-count convention on your bond.
Confirm the interest rate and payment frequency on your bond.
Confirm the interest rate and payment frequency on your bond.
Find when the most recent coupon payment was made.
Find when the most recent coupon payment was made.
Calculate how many days have passed since the most recent coupon-paying day.
Calculate how many days have passed since the most recent coupon-paying day.
Confirm the face or par value of your bond.
Confirm the face or par value of your bond.
Know the equation for bond accrued interest.
Know the equation for bond accrued interest.
Input your variables.
Input your variables.
Find the period interest rate.
Find the period interest rate.
Calculate your day-count fraction.
Calculate your day-count fraction.
Determine the value of your accrued interest.
Determine the value of your accrued interest.
Open Excel and create a new sheet.
Open Excel and create a new sheet.
Enter the names of the variables in the first column.
Enter the names of the variables in the first column.
Input the variables.
Input the variables.
Create the YEARFRAC function, and input the values.
Create the YEARFRAC function, and input the values.
Multiply the function by the par value and coupon rate.
Multiply the function by the par value and coupon rate.
Press enter and get your answer.
Press enter and get your answer.
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