A coupon bond is paid on a regular schedule, either one, two, or four times a year. If you’re thinking about investing in a coupon bond, you can calculate the calendar date of the most recent coupon payment by using the COUPPCD function. If you’d like to know when the most recent coupon payment occurred, you can use the COUPPCD function.
- [Voiceover] When you purchase a coupon bond…you purchase a bond that will give you…periodic interest payments, also called coupons.…You can receive coupon payments either once a year,…twice a year or four times a year.…In this movie I will show you how to…calculate the coupon date immediately prior…to you taking ownership of the bond,…and that's because most bonds aren't actually sold…at the origination date, many investors…choose to buy them after they've already been issued,…and the original buyer wants to sell them…either for cash flow reasons,…because they have a better investment, or some other reason.…
I'll show you how to calculate the coupon date…immediately prior to your settlement.…I'll use the PreviousCouponDate_04_06 file,…which you can find in the chapter four folder…of the exercise files collection.…We need to know four different values…to calculate the previous coupon date.…The first is the settlement date,…and that is the date that you actually…take possession of the bond.…It's usually a couple of days after you…
- 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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