The COVARIANCE.P function

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The COVARIANCE.P function <Article <Blog | SumProduct are Excel training experts: financial modeling, strategic data modeling, model audit, planning and strategy, training courses, tips and online knowledge base.

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Welcome back to our regular blog of Excel functions from A to Z. Today we look at the COUPDAYBS function.

The COVARIANCE.P function

Bonds that pay interest before maturity are known as coupon bonds.. When you buy such a bond, you need to know how long within the coupon period you are buying the bond so you can know how long you will have to wait to receive your first interest payment. You can calculate the number of days between the start of the coupon and the settlement date using the knockin days between Bstarting ssettlement function, which is abbreviated as COUPDAYBS. This function returns the number of days from the beginning of a coupon period to its settlement date.

The COUPDAYBS The function uses the following syntax to operate:

COUPDAYBS (liquidation, expiration, frequency, [basis])

The COUPDAYBS The function has the following arguments:

  • settlement: this represents the settlement date of the security. The settlement date of the security is the date after the issue date when the security is traded with the buyer.
  • maturity: this is the expiration date of the security, namely when security expires
  • frequency: The number of coupon payments per year. For annual payments, frequency it is 1; for semester, frequency it is 2; for quarterly, frequency it is 4. These are the only options (look down)
  • base: the type of day count base to use. This is optional. There are five options:


Day Count Base

0 or omitted

United States (NASD) 30/360


Real / real


Real / 360


Actual / 365


European 30/360

It should also be noted that:

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, the 1 of January of 1900 is the serial number 1 and the 1 of January of 2008 is the serial number 39448 because it is 39,448 days after 1 of January of 1900.
  • dates must be entered using the DATE function, or as a result of other formulas or functions. For instance, use = DATE (2020,2,29) for him 29th February 2020. Problems can arise if dates are entered as text
  • the settlement date is the date a buyer purchases a coupon, as a bonus. The expiration date is the date a coupon expires. For instance, Suppose a bond is issued to 30 years the 1 of January of 2008 and a buyer buys it six months later. The issue date would be 1 of January of 2008, the settlement date would be 1 July 2008 and the expiration date would be 1 of January of 2038, 30 years after the date of issue of the 1 of January of 2008
  • all arguments are truncated to integers
  • And settlement O maturity is not a valid date, COUPDAYBS return the #VALUE! error value
  • And frequency is any number other than 1, 2 O 4, COUPDAYBS return the #ON ONE! error value
  • And base <0 o si base > 4, COUPDAYBS return the #ON ONE! error value
  • And settlementmaturity, COUPDAYBS return the #ON ONE! error value.

Please, see my example below:


Soon we will continue with our functions from A to Z of Excel. A full page of the feature articles can be found. here.

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