XL98: Basis Argument for Financial Functions

ID: Q192379

The information in this article applies to:

Microsoft Excel 98 Macintosh Edition

SUMMARY

This article describes the Basis argument and how it is evaluated in Microsoft Excel 98 Macintosh Edition financial functions.

MORE INFORMATION

Basis is the type of day count basis as it relates to financial equations. The following is a list of Microsoft Excel financial functions that use a basis:


   ACCRINT()      COUPNUM()      ODDFPRICE()      PRICEDISC()
   ACCRINTM()     COUPPCD()      ODDFYIELD()      PRICEMAT()
   COUPDAYS()     DISC()         ODDLPRICE()      RECEIVED()
   COUPDAYSNC()   DURATION()     ODDLYIELD()      YIELD()
   COUPNCD()      MDURATION()    PRICE()          YIELDDISC()

The table below explains all five types of bases with examples for each type:


   Basis           Day count basis
   ------------------------------------

   0 or omitted    30/360
   1               Actual/Actual
   2               Actual/360
   3               Actual/365
   4               European Form 30/360

Basis 4 treats the end of February and the thirty-first of a month differently than the NASD (National Security Dealers) or SIA (Securities Industry Association).

Basis Types

0 or omitted Basis - 30/360 - This method uses 30 days a month for a total of 360 days a year. The yields of agencies are calculated on this basis. These agencies include Government-sponsored organizations that make up a range of Federal Banks, Loan Mortgage Banks. This method uses 180 days.

1 - Actual/Actual - This method is used by Treasuries (Backed by the U.S. Government, no risk investment) which means there are the actual number of days counted. This takes into account if there is a leap year. In reality there could be 365 or 366 days.

2 - Actual/360 - This method is similar to the Actual/Actual method shown above, but only has 360 days per year.

3 - Actual/365 - Same as above, but there are 365 days per year.

4 - European Form 30/360 - This is the European method for starting and ending dates that occur on the thirty-first of the month. For example: if the starting or ending date is the thirty-first of a month, it then becomes equal to the thirtieth of the same month.

REFERENCES

For more information about financial functions, click Contents And Index on the Help menu (or on the Balloon Help menu if you are using a version of the Macintosh operating system earlier than 8.0), click the Index button in Microsoft Excel Help, type the following text

financial functions

and then click Show Topics. Select the "Financial functions" topic, and click Go To. If you are unable to find the information you need, ask the Office Assistant.

Additional query words: xl98 Security Securities Time

Keywords : kbdta xlformula
Version : MACINTOSH:98
Platform : MACINTOSH
Issue type : kbinfo