Returns the bond-equivalent yield for a treasury bill.
If this function is not available, run the Setup program to install the Analysis ToolPak. After you install the Analysis ToolPak, you must enable it by using the Add-Ins command on the Tools menu.
Settlement is the treasury bill's settlement date. The security settlement date is the date after the issue date when the treasury bill is traded to the buyer.
Maturity is the treasury bill's maturity date. The maturity date is the date when the treasury bill expires.
Discount is the treasury bill's discount rate.
- Settlement and maturity are truncated to integers.
- If any argument is nonnumeric, TBILLEQ returns the #VALUE! error value.
- If settlement or maturity is not a valid date, TBILLEQ returns the #NUM! error value.
- If discount £ 0, TBILLEQ returns the #NUM! error value.
- If settlement > maturity, or if maturity is more than one year after settlement, TBILLEQ returns the #NUM! error value.
- TBILLEQ is calculated as TBILLEQ = (365 x rate)/360-(rate x DSM), where DSM is the number of days between settlement and maturity computed according to the 360 days per year basis.
A treasury bill has the following terms:
March 31, 1993, settlement date
June 1, 1993, maturity date
9.14 percent discount rate
The bond equivalent yield for a treasury bill (in the 1900 date system) is:
TBILLEQ("3/31/93","6/1/93",0.0914) equals 0.094151 or 9.4151 percent