Coupon bonds are bonds that pay interest prior to maturity and those interest…payments are paid on a regular schedule which can occur either one, two or four times a year.…After you take possession of the bond, you can calculate the calendar date of…your first coupon payment by using the COUP and the CD function, and that…function name is short for coupon next coupon date.…So, to calculate the date the next coupon payment is due, you can use the…following four arguments and the first value you need to know is the settlement…date and that's just the date that you buy into the investment.…
The next argument is the maturity date and that is the date that the…bond investment ends.…So, that would probably be your last coupon payment and any other money due to you.…Then we have the coupon frequency and that is the number of coupon payments for year.…And again, for this function that can be either one, two, or four and then…you have the basis.…And basis is how you calculate the number of days in a month and a 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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