Year Fraction Formula (YEARFRAC)

[IPerlovsky]

Does this formula produce a fraction consistent with part of the day count
using 365 days and part of the day count using 366 days when the start date
the formula references is in a 365 day year and the end date is in a 366 day
year and vice versa?

 

[N Harkawat]

Look in Excel help to get details of day count convention...default is 30/360

 

[IPerlovsky]

I am using actual/actual (ie, 1). But that does not tell me definitively if
part of the fraction is based on 365 and the other is 366. I am afraid that
Excel might choose either 365 or 366 based on which year the start/end date
is in?

 

[N Harkawat]

It does take into account the number of days in a year (actual days0

To check if start date 1/1/05 end date 6/30/07 ..number of days between
these 2 dates = 910 and year frac returns 2.4932 ...910 / 2.4932 = 365 .000
even

Now if you changed the start date toi 1/1/04 (2004 has 366 days) Excel then
returns 365.25 and NOT 366