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This detailed article guides you through the process of utilizing the CoupDays function in Excel.
Functionality: The COUPDAYS function calculates the number of days within an interest period, including the settlement date.
Syntax: COUPDAYS(settlement, maturity, frequency, [basis])
In this context:
- settlement: Securities settlement date is the day after the securities are sold following the issue date.
- maturity: Maturity date or expiration date of the securities.
- frequency: The number of interest payment periods for the securities per year. It can take the following values:
+ With frequency = 1: Annual payments.
+ With frequency = 2: Semi-annual payments.
+ With frequency = 4: Quarterly payments.
- basis: The basis used to calculate the number of days.
+ For basis = 0 or omit: Day-count basis 30/360 according to US standards.
+ For basis = 1: Calculate actual days / actual year.
+ For basis = 2: Actual month / 360 days / year.
+ For basis = 3: Actual month / 365 days / year + basis = 4: 30/360 days according to European standards.
Example: Calculate the number of days in the interest period including the settlement date.
In the cell where you want the result, enter the following formula: COUPDAYS(A17,B17,C17,D17).
Note: In the given example, the default basis is not specified, meaning it defaults to the value of 0. When entering dates, ensure they are formatted according to the day-count basis. If you input the wrong basis => it will return an error #NUM!
Above is a detailed guide on how to use and apply the COUPDAYS function, hoping it will be helpful for you.
Wishing you all success on your journey!
