Coupon bonds pay at regular intervals, either one, two, or four times a year. Excel 2016 includes the COUPDAYSNC function, which calculates that value for you. When you own a coupon bond, you’ll receive a payment every time a coupon comes due. If you know how many days it will be before you get paid, you can manage your cash flow more effectively.
- Coupon bonds pay interest at regular intervals.…Either one, two, or four times a year.…If you want to calculate the number of…days from the settlement date to the next coupon date,…you can do so using the function coup days NC.…In other words, NC stands for next coupon.…I'll show you how to do that in this movie.…My sample file is called DaysToNextCoupon_04_03…and you can find it in the chapter four folder of…your exercise files collection.…
This formula requires four bits of information.…The first is the settlement date.…That's the date that you actually…take possession of the security.…Next, is the maturity date.…And that is the date when the security…stops earning interest and about two weeks later,…you get your principal and any…accumulated interest into your account.…Next is the coupon frequency.…That is the number of payments per year.…that can be either one, two, or four.…And basis, is how you track the calendar.…And, I'll describe those options…in more detail in the formula.…
Let's go ahead and create that formula now,…
- 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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