Join Curt Frye for an in-depth discussion in this video COUPDAYS: Calculating days in the settlement date's coupon period, part of Excel 2010: Financial Functions.
When you invest in a coupon bond, that is a bond that pays interest before…maturity, 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, which is short for coupon days.…To make that calculation you need to know four things.…The first argument for the function is the settlement date. That is the date that…you take possession of the investment or basically when you buy it.…Then we have the maturity date and that is the date that the bond investment ends.…
Then we have the coupon frequency and that is the number of interest…payments you get per year.…So for the coupon frequency of 1 it's annual. You get one per year.…The other possible values are 2, which is every six months or semiannual, and…then 4, which is quarter.…Any value other than the 1, 2 or 4 in that slot will generate a formula error.…And then finally we have the basis and basis is how you count the days in the year.…In North America the standard is to use a 30-day month and 12 months for 360-day year.…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Q: Where can I learn more about Excel formulas?
A: Discover more on this topic by visiting Excel formulas on lynda.com.
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m 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 5s
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