Next coupon date - IF THEN formula

This was actually a simple problem in semi-annual coupon bond pricing when I was asked to determine the next coupon/interest date after the settlement date. I just needed to use my common sense to find the date from the maturity date.



If the maturity date is 15-Jul-08 and the coupon is paid semi-annually, then the coupon dates are 15-Jan and 15-Jul (6 month difference) ignoring the year. If the settlement date is 16-Oct-07, then the next date after 16-Oct-07 between 15-Jul and 15-Jan should be 15-Jan-08. It's easy!

However, Excel and Visual Basic never consider my common sense to work just like that. There is always a formula or function need to be developed. Surprisingly, using the arithmetical date formula, I came up with the longest if then formula I've ever made. That's crazy as I couldn't find the simpler one.

Finally, I found this bloody Excel formula:

=IF(AND(B3>DATE(YEAR(B3),MONTH(F3)+6,DAY(F3)),DATE(YEAR(B3),MONTH
(F3)+6,DAY(F3))>DATE(YEAR(B3),MONTH(F3),DAY(F3))),DATE(YEAR(B3)+1,
MONTH(F3),DAY(F3)),IF(AND(B3<DATE(YEAR(B3),MONTH(F3),DAY(F3)),
DATE(YEAR(B3),MONTH(F3),DAY(F3))<DATE(YEAR(B3),MONTH(F3)+6,DAY(F3))),
DATE(YEAR(B3),MONTH(F3),DAY(F3)),DATE(YEAR(B3),MONTH(F3)+6,DAY(F3))))

And this is the easy way of how you look at the formula:

IF(
AND(B3>DATE(YEAR(B3),MONTH(F3)+6,DAY(F3)),
DATE(YEAR(B3),MONTH(F3)+6,DAY(F3))>DATE(YEAR(B3),MONTH(F3),DAY(F3))),

=> if Settlement Date > first Coupon Date > second Coupon Date

DATE(YEAR(B3)+1,MONTH(F3),DAY(F3)),
=> next coupon date

IF(
AND(B3<DATE(YEAR(B3),MONTH(F3),DAY(F3)),
DATE(YEAR(B3),MONTH(F3),DAY(F3))<DATE(YEAR(B3),MONTH(F3)+6,DAY(F3))),

=> if Settlement Date < first Coupon Date < second Coupon Date

DATE(YEAR(B3),MONTH(F3),DAY(F3)),
=> next coupon date

Else,
=> if first Coupon Date < Settlement Date < second Coupon Date

DATE(YEAR(B3),MONTH(F3)+6,DAY(F3))))
=> next coupon date

Bear in mind that 15-Jul-07 is the first coupon date and 15-Jan-08 is the second coupon date and the settlement date 16-Oct-07 is between both dates, therefore the next coupon date is DATE(YEAR(B3),MONTH(F3)+6,DAY(F3)), which is on 15-Jan-08.

If you want to be spoiled by Excel, there is actually a formula already provided: COUPNCD(settlement,maturity,frequency,basis).
I just wanted to be a dumb person who had been trying to figure out this IF THEN formula.

Excel and Macro Tips

John Walkenbach's Excel Tips

• user tips


• developer tips

Allen Wyatt's ExcelTips


Daily Dose of Excel

A Noisy Market Siren

The idea is to automatically activate a noisy siren from a sound file when opening the excel file as the market index value drops to, or is below, the minimum expected value. The market index value is refreshed every 30 minutes.

Eg. the index value alert is 4,300. If the market index value is below 4,300, the noisy siren will be automatically activated.

I first set a WebQuery for the market index latest price with automatic refresh every 30 minutes. Then, apply VBA macro to call a sound file.

I modified the VBA codes taken from ExcelTip.com and J-Walk.com as follows:

Public Declare Function sndPlaySound Lib "winmm.dll" _
Alias "sndPlaySoundA" (ByVal lpszSoundName As String, _
ByVal uFlags As Long) As Long
-------------------
Sub PlayWavFile(WavFileName As String, Wait As Boolean)

If Dir(WavFileName) = "" Then Exit Sub
If Wait Then
sndPlaySound WavFileName, 0
Else
sndPlaySound WavFileName, 1
End If

End Sub
-----------------------------
Sub PlaySoundAlert()

For i = 1 To 5

PlayWavFile "c:\WINDOWS\Media\notify.wav", True

Next i

End Sub
-----------------------------
Function Alarm(V)

x = Range("alert")

If V <= x Then

Call PlaySoundAlert

Alarm = True
Exit Function
Else
Alarm = False

End If

End Function

VBA Progress Indicator

I learn how to create an VBA progress indicator from j-walk blog after surfing around and finally found the simplest one.

And now I can apply it into my portfolio optimisation model, as follows:

Sub optimise()

Dim PctDone As Single

Application.ScreenUpdating = False

nosim = Range("nosim")

For i = 1 To nosim

Application.DisplayStatusBar = True
Application.StatusBar = "Please be patient..."

Range("simulation").Copy
Range("simmeanresult").Cells(71 + i, 1).PasteSpecial Paste:=xlPasteValues

Count = Count + 1
PctDone = Count / nosim

With UserForm1
.FrameProgress.Caption = Format(PctDone, "0%")
.LabelProgress.Width = PctDone * (.FrameProgress.Width - 10)
End With

DoEvents

Next i

Unload UserForm1

Application.StatusBar = False

SolverOk SetCell:=Range("tangency"), MaxMinVal:=1, ValueOf:=0, ByChange:=Range("proweight")
SolverAdd CellRef:=Range("proweight"), Relation:=3, FormulaText:="0"
SolverAdd CellRef:=Range("one"), Relation:=2, FormulaText:="100%"
SolverSolve UserFinish:=True

Application.ScreenUpdating = True

End Sub

Iteration and Circular Reference

If you can't live without circular references, just turn on the iteration.

cell A + cell B = cell C
while:
cell B = cell C - cell A

In Excel, cell B and cell C are the sources of circular references.
However, to make the calculation work as is, the iteration must be set on as the image below. (Tools>Options)



Then, we all can live with circular references.

Name a Cell

One of the important tools in the Excel is cell naming. By naming a cell, we can relate the cell name with any formulae we want to make. Furthermore, in creating macros or visual basic codes in Excel, cell naming is very helpful and important particularly in identifying the corresponding cell.

To name a cell, just go to the box 0n the top left side. Write the desired name and press enter.


For example, we want to calculate the return of share prices. With the conventional method, we use formulae =(B2/B3)-1. However, since B2 has been named as "today" and B3 as "lastyear", then the formulae becomes =(today/lastyear)-1.


This handy method is useful in a big spreadsheet when the formulae contains particular parameters that need to be referred frequently. It's also good for easily remembering and quickly referencing the formulae.