The settlement date is the date the investor takes possession of a security. The maturity date is the date when the investment ends and the principle plus accrued interest is returned to the investor. The frequency is the number of interest payments per year. Basis specifies the method used to count days (see below). In the example shown, the formula in F6 is: COUPDAYBS returns an integer, so use a number format and not a date format to display properly.
Entering dates
In Excel, dates are serial numbers. Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly, you can use the DATE function. Below is the formula in F6 reworked with hardcoded values and the DATE function: With these inputs, COUPDAYBS returns the same result as above.
Basis
The basis argument controls how days are counted. The COUPDAYBS function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis. This article on wikipedia provides a detailed explanation of available conventions.
Notes
In Excel, dates are serial numbers. All arguments are truncated to integers, so for example, time is ignored. If settlement or maturity dates are not valid, COUPDAYBS returns #VALUE! If basis is out-of-range , COUPDAYBS returns #NUM! If maturity date is not later than settlement date, COUPDAYBS returns #NUM!
Dave Bruns
Hi - I’m Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.
