Daily DAX : Day 200 ACCRINT

 The ACCRINT function in Power BI DAX calculates the accrued interest for a security that pays periodic interest, such as a bond. It’s primarily used in financial analysis to determine the interest earned on an investment between payment periods.

Syntax

ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])

Parameters

    issue: The date the security is issued (e.g., bond issuance date).

    first_interest: The date of the first interest payment.

    settlement: The date the security is purchased or settled.

    rate: The annual coupon rate of the security (as a decimal, e.g., 5% = 0.05).

    par: The par value of the security (e.g., $1,000 for a typical bond).

    frequency: The number of interest payments per year (1 = annual, 2 = semi-annual, 4 = quarterly).

    [basis] (optional): The day count basis for interest calculation (default is 0):

        0: US (NASD) 30/360

        1: Actual/actual

        2: Actual/360

        3: Actual/365

        4: European 30/360

    [calc_method] (optional): Logical value (TRUE/FALSE) to determine the calculation method:

        TRUE (default): Calculates interest from issue to settlement.

        FALSE: Calculates interest from the last interest payment to settlement.

Return Value

The accrued interest amount for the specified period.

Use Case

Scenario: A financial analyst needs to calculate the accrued interest on a bond purchased between interest payment dates to ensure accurate valuation or reporting.

Example:

Suppose a bond is issued on January 1, 2023, with the first interest payment on July 1, 2023. It’s purchased on April 1, 2023, with:

    Annual coupon rate: 6% (0.06)

    Par value: $1,000

    Frequency: Semi-annual (2)

    Day count basis: US 30/360 (0)

DAX Formula:

Accrued_Interest = ACCRINT(

    DATE(2023, 1, 1),   -- issue date

    DATE(2023, 7, 1),   -- first interest date

    DATE(2023, 4, 1),   -- settlement date

    0.06,               -- coupon rate

    1000,               -- par value

    2,                  -- semi-annual payments

    0                   -- US 30/360 basis

)

Calculation:

    The bond pays interest every 6 months (6% / 2 = 3% per period).

    From January 1 to April 1 (90 days, based on 30/360), 90/180 of the interest period has elapsed.

    Interest for the period: $1,000 * 3% = $30.

    Accrued interest: $30 * (90/180) = $15.

Result: The formula returns $15, representing the interest accrued from the issue date to the settlement date.

Practical Applications

    Bond Valuation: Calculate accrued interest to determine the total cost of purchasing a bond (clean price + accrued interest).

    Portfolio Management: Track interest earned on fixed-income securities for reporting or performance analysis.

    Financial Reporting: Ensure accurate interest income recognition for accounting purposes.

Notes

    Ensure dates are in a valid format (e.g., using DATE function in DAX).

    The function assumes the settlement date is between the issue and first interest date unless calc_method is set to FALSE.

    Incorrect basis or frequency can lead to inaccurate results, so align with the security’s terms.

This function is niche but critical for financial models involving fixed-income securities in Power BI.