The `TBILLEQ` function in Excel is used to calculate the bond-equivalent yield for a U.S. Treasury bill. This yield is an annualized rate of return that can be useful for comparing the returns of short-term Treasury bills to other investments. To use the `TBILLEQ` function, you’ll need to provide the following arguments:
- Settlement: The settlement date of the Treasury bill. This is the date after the issue date when the T-bill is actually traded to the buyer. It should be entered as a date value.
- Maturity: The maturity date of the Treasury bill. This is the date when the T-bill expires and the face value is paid to the investor. It should also be entered as a date value.
- Discount: The discount rate of the Treasury bill. This is the percentage by which the T-bill is sold below its par value.
Syntax
TBILLEQ(settlement, maturity, discount)
Example
Suppose you have the following data:
- Settlement date: January 1, 2023
- Maturity date: June 30, 2023
- Discount rate: 2.5%
To calculate the bond-equivalent yield, you would use:
=TBILLEQ("1/1/2023", "6/30/2023", 0.025)
Key Points
- Dates should be entered in a valid date format. Ex: `”MM/DD/YYYY”` or use the `DATE` function like `DATE(2023,1,1)`.
- Make sure the settlement date is before the maturity date, and both dates should be valid.
- The discount rate should be in decimal form, not percentage, so 2.5% should be entered as `0.025`.
- The result will give you the bond-equivalent yield, allowing for comparison with other investment returns.
Always verify that the Excel version you’re using supports the `TBILLEQ` function, as features can vary between Excel editions.
Unlock Your Potential
Excel
Access
Power BI
