The Google Sheets function COUPPCD is designed to calculate the last coupon or interest payment date that occurs before a specified settlement date. This function is particularly useful for investors and financial analysts who deal with bonds and other fixed-income securities, as it helps them determine when payments are due based on various settlement scenarios.

Syntax

COUPPCD(settlement, maturity, frequency, [basis])

• settlement: The date on which the bond is purchased or settled. This date should be in a standard date format.
• maturity: The date on which the bond will expire, returning the face value to the bondholder. This should also be in a standard date format.
• frequency: The number of coupon payments made per year for the bond. Common values are 1 for annual, 2 for semi-annual, and 4 for quarterly.
• basis: An optional parameter that specifies the day count convention for the bond. It can take values from 0 to 4, with each corresponding to a specific day count basis.

Example #1

=COUPPCD("2023-07-01", "2025-07-01", 2)

In this example, the function calculates the last coupon payment date for a bond that settles on July 1, 2023, and matures on July 1, 2025, with semi-annual payments. The expected result might be June 30, 2023.

Example #2

=COUPPCD("2023-07-01", "2024-12-01", 1)

Here, the function is used to find the last payment date for a bond with an annual frequency that matures on December 1, 2024. The expected output would be November 30, 2024.

Example #3

=COUPPCD("2023-06-15", "2026-06-15", 4, 1)

In this case, the function is used to determine the last coupon date for a bond with quarterly payments, settling on June 15, 2023, and maturing on June 15, 2026. The result could be March 15, 2023.

Error handling

• VALUE! – This error occurs if any of the date parameters are not in a valid date format.
• NUM! – This indicates that the maturity date is earlier than the settlement date.
• REF! – Occurs when a referenced cell for the settlement or maturity date is invalid or removed.

Conclusion

The COUPPCD function in Google Sheets serves as an essential tool for calculating the last coupon payment date prior to a specified settlement date. By understanding its syntax and applications, investors can accurately track payment schedules for bonds, ensuring they make informed financial decisions. This function is not only valuable for financial analysts but also for anyone involved in managing fixed-income investments.