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.
- [Instructor] When you invest in a coupon bond,…that is, a bond that pays interest during the bond's life,…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,…C-O-U-P-D-A-Y-S function.…To demonstrate how to use that function, I will use…the DaysInSettlementPeriod_04_02 sample file,…which you can find in the Chapter Four folder…of the Exercise Files collection.…In this case I have four bits of information that I need.…The first is the settlement date.…
That's the date that you take possession of the security,…that's in C3.…Maturity date is when the investment ends and all…principle and accrued interest is returned to you.…That's in C4.…C5 is the number of coupons you get per year,…the coupon frequency.…That can be one, two or four.…And then the basis, which is how Excel looks at the calendar…is in cell C6.…I'll go into more detail on the basis when we get to that…part of the formula.…So I'll go ahead and click in cell C9,…
- 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
- Analyzing simulation results
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. Analyzing Simulation Results
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