The YEARFRAC
function returns difference btween two
dates as a fraction of a year.
- The syntax
for the function is YEARFRAC (start_date,
end_date, basis ).
The "start_date"
and "end_date"
must be a string or a recognizable
date format in Excel. "basis" is
the integer number defining the basis
or method for calculating the fraction.
- Basis
0 or omitted US 30/360 (If
the start date or end date is the
last day of the month it becomes
the 30th day of the same month (regardless
of it being the 31st or the 28th).
But if the start date earlyer than
the 30th of the month and the end
date is still the last day of the
month the end date hets promoted
to the 1st of the next month. The
number of days is then calculated
and divided by a year of 360 days).
- Basis 1 Actual/Actual (takes
the actual number of days and divides
by the actual number of days in the
year).
- Basis 2 Actual/360
(takes the actual number of days
between the dates and divides by
360 days).
- Basis 3 Actual/365
(takes the actual number of days
and divides by 365).
- Basis 4 European
30/360
(rounds any dates that start or
end on the 31st to months to 30 days
and a year to 360).
For
example:
YEARFRAC ("10/19/2006", "9/30/2007" ,
1) = 0.947945205 which the actual number
of days in the year or YEARFRAC ("10/19/2006", "9/30/2007" ,
2) = 0.961111111 giving a greater fraction
as it only uses 360 days for the year.
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