In Excel, there are many calculation functions, serving in fields such as statistics, mathematics, securities, treasury … And the TBILLPRICE function in Excel is one of the functions used by many users to calculate the value. of Treasury bonds at $ 100 face value.
As the introduction says, TBILLPRICE function in Excel is the calculation function to return the value of a bond in the treasury based on the $ 100 face value.
TBILLPRICE function in Excel
How to use the TBILLPRICE function in Excel
1. Description and syntax used
This is a function that calculates a value based on the $ 100 face value for treasury bonds.
TBILLPRICE (settlement, maturity, discount)
– Settlement: The settlement date of the securities is the date after the issuance date of bonds to be sold to buyers.
– Maturity: Expiry date or maturity date of the bond.
– Discount: The discount rate or the rate of return on the bond.
– Functions that perform calculations based on formulas:
In which: DSM is the number of days from settlement to expiry.
– If Maturity> Discount or Discount – Maturity> 12 months -> function returns error value #NUM!
– Case Maturity and Discount not valid date -> function returns value #VALUE.
– If Discount ≤ 0 -> function returns error value #NUM!
2. Examples of specific situations
Suppose you need to calculate the value of a bond with the settlement date of January 1, 2018, the maturity date of December 1, 2018, and the discount rate of 8.5%.
Step 1: In the cell to calculate the value -> you enter the formula: = TBILLPRICE (A3, B3, C3)
Step 2: Press Enter -> The value of the bond is based on face value of $ 100 with a discount rate of 8.5% as:
Where if you enter Due date – Settlement date> 12 months The function returns the error value #NUM!
Where if Maturity and Discount is not a valid date -> function returns value #VALUE.
If Discount ≤ 0 ->, the function returns the error value #NUM!
Above is the usage and some special cases of TBILLPRICE function in Excel. Use this function to help you calculate values based on $ 100 face value for treasury bonds. Good luck!