Microsoft Office Tutorials and References
In Depth Information
Using RECEIVED to Calculate Total Cash Generated from a Bond Investment
settlement
settlement This is the security s settlement date, which is the
date on which you purchased the security.
maturity
maturity This is the security s maturity date, which is the date
when the security expires.
investment
investment This is the amount invested in the security.
discount
discount This is the security s discount rate.
basis
basis This is the type of day count basis to use. For example, use 0
for U.S. bonds.
The settlement, maturity, and basisarguments are truncated to integers. If
settlementor maturityis not a valid date, RECEIVED returns a #NUM! error.
If investmentis less than or equal to 0 or if discountis less than or equal
to 0, RECEIVED returns a #NUM! error. If basisis less than 0 or if basisis
greater than or equal to 4, RECEIVED returns a #NUM! error. If settlementis
greater than or equal to maturity, RECEIVED returns a #NUM! error.
In Figure 13.19 , columns B, C, and D show the total received for a bond pur-
chased on various dates. The function takes into account the days to the next
coupon date.
Figure 13.19.
Figure 13.19. In the 15 days between cells B1 and C1, you lose \$1.19 in in-
In the 15 days between cells B1 and C1, you lose \$1.19 in in-
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