When you invest in a coupon bond, you can evaluate your investment more accurately if you know the number of days in the coupon period. To find that value, you can use the COUPDAYS function. Knowing the number of days in a coupon period helps you evaluate your investment. Always be sure that you’re using the correct basis—if you’re not, the formula could give you an unintended result.
- [Voiceover] When you invest in a coupon bond,…you can evaluate your investment more accurately…if you know the number of days in the coupon period.…To find that value, you can use the C-O-U-P days function.…I'll show you how to construct formulas using that function.…My sample file is DaysinSettlementPeriod_04_02.…You can find that in the Chapter Four folder…of the exercise files collection.…In this case I have a bond…with a settlement date of May 15, 2016.…That's the date that I actually…take possession of the security.…
The maturity date, in other words,…the day that the bond ends its run,…and I receive my principle back…as well as accumulated interest,…is on December 31st, 2017.…I will receive four coupons per year,…and then Basis is how we look at the days in the calendar.…And I'll describe the options in more detail…when I get to that part of the formula.…Let's go ahead and create the formula,…this is all the information I need.…So I'll click in cell C9, type in equals sign,…and my function is C-O-U-P days,…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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