The COUPNCD function in Google Sheets is **useful when you need to calculate the next coupon date after the settlement date.**

This function is useful when trading securities, which guarantee an interest payment at a certain frequency for the buyer after the settlement date.

##### Table of Contents

The rules for using the `COUPNCD`

function in Google Sheets are as follows:

- The function requires several arguments: the settlement date, maturity date, and frequency of payment.
- You may also indicate the day count basis for the computation.
- The function returns the date of the next coupon date.

Let’s take a look at a quick example.

You have recently acquired a security bond with a settlement date of January 2nd, 2021. According to the bond’s contract, the maturity date of the security is December 9th, 2026. Payments are received quarterly, or a frequency of four payments a year. How do we compute for the next coupon date?

With all this info, you can use the `COUPNCD`

function to output the next coupon date easily. Let’s dive into how to use all the provided information about our security and later work on an actual sample spreadsheet.

**The Anatomy of the COUPNCD Function**

So the syntax (the way we write) of the `COUPNCD`

function is as follows:

=COUPNCD(settlement, maturity, frequency, day_count_convention)

Let’s dissect this thing and understand what each of these terms means:

**=**the equal sign is how we start any function in Google Sheets.**COUPNCD()**is our`COUPNCD`

function. It computes the next coupon payment date of a given security.**settlement**refers to the security’s settlement date, or the date when the security is delivered to the buyer.**maturity**refers to the end date of the security.**frequency**refers to the number of coupon payments made per year. Annual payments correspond to a frequency of 1, quarterly payments correspond to a frequency of 4.**day_count_convention**is an indicator of what day count message to use. By default, the value is 0, which corresponds to the US (NASD) 30/360 convention, which assumes 30 day months and 360 day years.

**A Real Example of Using COUPNCD Function**

Let’s look into an example of the `COUPNCD`

function being used in a Google Sheet spreadsheet.

In the image above, we have a table of securities with settlement dates, maturity dates, and frequency of payment. Using the `COUPNCD`

function, we’re able to calculate the next coupon date of the given security.

To get the values in Column E, we just need to use the following formula:

=COUPNCD(A2,B2,C2,D2)

You can try it out yourself by making a copy of the spreadsheet above using the link I have attached below.

If you’re ready to try out the `COUPNCD`

function in Google Sheets yourself, let’s begin writing it from scratch!

**How to Use COUPNCD Function in Google Sheets**

- To start using the
`COUPNCD`

function, select the cell we will first put our function’s output. In this example, we can start computing the first security by writing our formula in cell**D2.**

- Next, we simply need to type the equal sign ‘
**=**‘ to begin the function, followed by ‘**COUPNCD(**‘. - A tooltip box may appear with info on the
`COUPNCD`

function. We can click on the arrow on the top-right-hand corner of the box to minimize it if necessary.

- Next, we should enter our arguments into our function. Cells
**A2**,**B2**, and**C2**contain the settlement date, maturity date, and frequency, respectively.

Afterward, simply hit**Enter**on your keyboard to let the function evaluate. As seen in the image below, now we know the next coupon date for our first security.

- Finally, we can drag down the formula to fill out the rest of the table. We now have the next coupon date of all our securities!

**Frequently Asked Questions (FAQ)**

**Why does my formula output a #VALUE! error?**

Either the settlement date or the maturity date may be invalid. To assure that the dates are valid, you may input the date using the `DATE`

formula, or use data validation for your dates.

**Why does my formula output a #NUM! error?****
**A #NUM! error indicates that there is something wrong with the arguments that prevent a result from being calculated. There could be multiple reasons why this can happen with the

`COUPNCD`

function. You must check if your frequency is either 1, 2 or 4, since any other value won’t be accepted. Your settlement date must also be earlier than your maturity date. Lastly, your day count convention, if specified, must be a number between 0 and 4

That’s all you need to know on how to use the `COUPNCD`

function in Google Sheets. This step-by-step guide shows how easy it is to find the next coupon date of a given security.

You can create powerful worksheets by using the `COUPNCD`

functions in Google Sheets together with the various other Google Sheets formulas available on the platform.

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