 # TBILLPRICE

In this comprehensive guide, we will explore everything you need to know about the TBILLPRICE formula in Excel. The TBILLPRICE function is used to calculate the price per \$100 face value of a Treasury bill, based on the discount rate, settlement date, and maturity date. This function is particularly useful for financial analysts and investors who want to determine the value of Treasury bills.

## TBILLPRICE Syntax

The syntax for the TBILLPRICE function in Excel is as follows:

TBILLPRICE(settlement, maturity, discount)

Where:

• settlement – The settlement date of the Treasury bill, which is the date after the issuance when the buyer takes possession of the bill. This date should be entered as a valid Excel date.
• maturity – The maturity date of the Treasury bill, which is the date when the bill expires and the face value is paid to the holder. This date should also be entered as a valid Excel date.
• discount – The discount rate of the Treasury bill, expressed as a percentage. This is the annual discount rate applied to the face value of the bill to determine its price.

## TBILLPRICE Examples

Let’s take a look at some examples of how to use the TBILLPRICE function in Excel:

Example 1: Calculate the price of a Treasury bill with a settlement date of January 1, 2022, a maturity date of April 1, 2022, and a discount rate of 2%.

TBILLPRICE(“1/1/2022”, “4/1/2022”, 2%)

In this example, the TBILLPRICE function will return the price per \$100 face value of the Treasury bill based on the given parameters.

Example 2: Calculate the price of a Treasury bill with a settlement date of June 15, 2022, a maturity date of December 15, 2022, and a discount rate of 1.5%.

TBILLPRICE(“6/15/2022”, “12/15/2022”, 1.5%)

Similarly, this example will return the price per \$100 face value of the Treasury bill based on the specified settlement date, maturity date, and discount rate.

## TBILLPRICE Tips & Tricks

Here are some tips and tricks to help you effectively use the TBILLPRICE function in Excel:

• Ensure that the settlement and maturity dates are entered as valid Excel dates. You can use the DATE function to create a valid date if necessary.
• Remember that the discount rate should be entered as a percentage, not a decimal. For example, enter 2% instead of 0.02.
• Keep in mind that the TBILLPRICE function calculates the price per \$100 face value. If you need to calculate the price for a different face value, simply multiply the result by the face value divided by 100.
• Use the TBILLYIELD function to calculate the yield of a Treasury bill based on its price, settlement date, and maturity date.

## Common Mistakes When Using TBILLPRICE

Here are some common mistakes to avoid when using the TBILLPRICE function in Excel:

• Entering the settlement and maturity dates as text instead of valid Excel dates. This will result in a #VALUE! error.
• Entering the discount rate as a decimal instead of a percentage. This will cause the function to return an incorrect result.
• Forgetting to adjust the result for face values other than \$100. To calculate the price for a different face value, multiply the result by the face value divided by 100.

## Why Isn’t My TBILLPRICE Working?

If you’re experiencing issues with the TBILLPRICE function, consider the following possible causes:

• The settlement or maturity date is not entered as a valid Excel date. Ensure that both dates are entered correctly and formatted as dates in Excel.
• The discount rate is entered as a decimal instead of a percentage. Make sure to enter the discount rate as a percentage (e.g., 2% instead of 0.02).
• The function returns a #NUM! error if the settlement date is greater than or equal to the maturity date. Ensure that the settlement date is earlier than the maturity date.
• The function returns a #VALUE! error if any of the arguments are non-numeric or if the dates are entered as text. Check the input values and correct any errors.

## TBILLPRICE: Related Formulae

Here are some related formulae that you may find useful when working with Treasury bills in Excel:

• TBILLYIELD: Calculates the yield of a Treasury bill based on its price, settlement date, and maturity date.
• TBILLRETURN: Calculates the bond-equivalent yield for a Treasury bill based on its purchase price, face value, and time to maturity.
• PRICEDISC: Calculates the price per \$100 face value of a discounted security, such as a Treasury bill, based on the discount rate, settlement date, and maturity date.
• YIELDDISC: Calculates the annual yield of a discounted security, such as a Treasury bill, based on its price, settlement date, and maturity date.
• DISC: Calculates the discount rate for a discounted security, such as a Treasury bill, based on its price, settlement date, and maturity date.

By understanding and mastering the TBILLPRICE function and its related formulae, you can effectively analyze and evaluate Treasury bills and other discounted securities in Excel.

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