RECEIVED Function

What is the Maturity RECEIVED Function?

The RECEIVED Function in Excel is a Financial function that calculates the total amount received at maturity for a security. This helps determine the total value of an investment at maturity.

When utilizing the maturity received function on Excel, it is important to note why and when the function would be necessary. To briefly define, the maturity received function is the total amount received once a fully invested security has matured.

The Excel formula is as follows: RECEIVED(settlement, maturity, investment, discount, [basis]). 'Basis' is an optional input that accounts for the security's day-count basis.

As you may already know, examples of security are financial assets that comprise mutual funds, stocks, and bonds.

Whether you are looking to find the total amount received from an investment project personally or in your day-to-day work, this article will highlight some key facts about using the maturity received function.

Throughout the article, we will be discussing the specifics of the function and going over an example to apprehend the dynamic of the excel function fully.

First, a formula breakdown will provide a clearer understanding of each category input. Then, the article will discuss the meaning of each and its association with the received amount of a fully invested security.

Maturity Received Formula

To reiterate, the formula used to calculate a matured security's total amount is as follows:

RECEIVED(settlement, maturity, investment, discount, [basis]).

Before inputting each category into its required placement of the excel formula, understanding the purpose of each classification will be crucial. To break down the formula, the received function consists of the following:

• Settlement: The first category in the formula is settlement. It is the date of agreement of the fully invested security.
• Maturity: Next, the maturity is calculated to determine the date on which the security is fully invested.
• Investment: Investment refers to the amount of funding in the security. The following section will look at an example of inputting each category.
• Discount: The discount simply implies the discount rate of the security.
• Basis: Lastly, the basis is the day count basis. As mentioned earlier, the basis is an optional calculation but accounts for the accrued interest of the fully invested security.

Maturity RECEIVED Function Example 

Let's do an example of a maturity received function to practice calculating the received amount of an invested security.

Looking over the Excel problem above, note that the format of the settlement and maturity utilizes the DATE function on Excel. The settlement date also occurs before the maturity date, preventing calculation errors.

After entering the inputs for both the settlement and maturity dates, let's move on to the following factors of the Excel function.

In the example, a $10,000 investment and a 3% discount rate for the fully invested security are inputted.

Again, as an optional use for the "basis" category, the example inputs 0.

If you are utilizing the "basis" component of the function, be sure only to input a numerical set of 0 - 4, as it makes the most logical sense in calculating.

Once each category of the function is organized, properly format the function, as provided above, and now accurately calculate the amount received of the security.

You can simply input "=RECEIVED" into the desired cell or table. In the example, the function is located within the maturity Received table, allowing you to easily navigate the security's total amount.

Afterward, you may highlight the corresponding variables needed to complete the function, as pictured below.

Another way to locate the maturity received function is to follow the steps as directed in the instructions:

• In the Excel sheet, find the Formulas tab at the top bar 
• Click on Financials
• Another drop-down bar will appear with functions in alphabetical order. Simply scroll down and locate "RECEIVED."

For reference, the "Maturity Received" row within Excel also displays the function format in which the order of components is organized. If encountering problems in receiving an accurate answer, received function errors can be further evaluated.

Remember that an optional input can be simply set to 0. If the basis is calculated, please insert the necessary calculations as needed.

Free Resources

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