PROVIDING ACCURATE, RELIABLE AND STRAIGHT TO THE POINT KNOWLEDGE ABOUT DIFFERENT IT TOOLS EXPLAINED WITH PRACTICAL EXAMPLES

CONTENTS

EXCEL FUNCTIONS-COUPDAYBS

COUPDAYBS function comes under the FINANCIAL FUNCTIONS category in Excel.

COUPDAYBS returns the number of days from the beginning of the coupon period to the settlement date.

PURPOSE OF COUPDAYBS IN EXCEL

COUPDAYBS tells us the number of days from the beginning of the coupon period to the settlement date.

PREREQUISITES TO LEARN COUPDAYBS

THERE ARE A FEW PREREQUISITES WHICH WILL ENABLE YOU TO UNDERSTAND THIS FUNCTION IN A BETTER WAY.

 

  •  Basic understanding of how to use a formula or function.
  •  Basic understanding of rows and columns in Excel.
  • Some information about the financial terms is an advantage for the use of such formulas.
  •  Of course, Excel software.
Helpful links for the prerequisites mentioned above

SYNTAX: COUPDAYBS

The Syntax for the function is

=COUPDAYBS(SETTLEMENT DATE, MATURITY DATE,NUMBER OF COUPON PAYMENTS, BASIS)

SETTLEMENT DATE is the security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.

MATURITY DATE   is the security’s maturity date. The maturity date is the date when the security expires.

NUMBER OF COUPON PAYMENT(FREQUENCY)   is the number of coupon payments per year. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4.

BASIS is the type of day count basis to use.

BasisDay count basis
0 or omittedUS (NASD) 30/360
1Actual/actual
2Actual/360
3Actual/365
4European 30/360

THE DATES SHOULD BE PUT USING THE DATE FUNCTION

=DATE(YYYY,MM,DD) OTHERWISE IT’LL RETURN AN ERROR.

EXAMPLE:COUPDAYBS IN EXCEL

DATA SAMPLE

The settlement date for the example is 1.1.2020

Maturity date is 31.3.2020

Freq of payout is 2

and basis is 1.

 

WORKDAY FUNCTION EXAMPLE
COUPDAYBS EXAMPLE

STEPS TO USE COUPDAYBS

The data is put in the cells from F8 TO F11.
For the result
we put the formula in F14 as

=COUPDAYBS(F8,F9,F10,F11)

The result comes out to be 93.

CONFUSION CLARIFICATIONS

NUMBER OF DAYS CALCULATION

We should always be having knowledge about the working of a function. Otherwise we may be stuck in a situation where we never know whether the answer is correct or not.

These formulas are doing nothing but playing with the dates.

MS Excel is converting the date to a number first. Number is the number of days after JAN 1 1900.

After converting to number it subtracts to find out the number of days between any two dates.

The same procedure is being followed up in these financial formulas.

These can be done with the simple calculations also but when we have a ready function, we can always take help.

 

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