COUPPCD Function Explained
The COUPPCD function in Microsoft Excel is used to calculate the previous coupon date before the settlement date. It takes three arguments: the settlement date, the maturity date, and the frequency of the coupon payments. The settlement date is the date on which the security is traded, and the maturity date is the date on which the security will expire. The frequency of the coupon payments is the number of coupon payments per year.
The function returns the previous coupon date before the settlement date. This is the date on which the bondholder received the most recent coupon payment. The COUPPCD function assumes that the first coupon payment is made on the maturity date, and that subsequent coupon payments are made on the same day of each month or quarter, depending on the frequency specified.
COUPPCD Function Syntax
The syntax for the COUPPCD function in Microsoft Excel is:
COUPPCD(settlement,maturity,frequency,basis)
The function takes four arguments:
settlement: This is the settlement date of the security, which is the date on which the security is traded and the buyer takes ownership. This argument must be a valid Excel date serial number or a valid date enclosed in quotation marks. If the date is earlier than the security’s issue date, the function returns the #NUM! error value.maturity: This is the maturity date of the security, which is the date on which the security will expire. This argument must be a valid Excel date serial number or a valid date enclosed in quotation marks. If the maturity date is before the settlement date, the function returns the #NUM! error value.frequency: This is the number of coupon payments per year. This argument must be either 1, 2, or 4, corresponding to annual, semiannual, or quarterly payments, respectively. If the value is not one of these three options, the function returns the #NUM! error value.basis: This is an optional argument that specifies the day-count basis to use for calculating the coupon payment dates. It must be a number from 0 to 4, or omitted. The basis codes correspond to the following day-count conventions:- 0 or omitted: US (NASD) 30/360
- 1: Actual/actual
- 2: Actual/360
- 3: Actual/365
- 4: European 30/360
If the basis is omitted, the function uses the default basis of US (NASD) 30/360.