Description
TBillPrice returns a currency representing the current price per $100 face value of a Treasury bill given the discount rate.
Arguments
settlementDate is a
Date or
DateTime specifying when the Treasury bill was purchased.
maturityDate is a
Date or
DateTime after the settlement date specifying when the Treasury bill matures.
discountRate is a positive number specifying the discount rate for the Treasury bill.
Action
TBillPrice returns a currency representing the current price per $100 face value of a Treasury bill given the discount rate. The discount rate is a calculation based on the return on investment and the length of time between settlement and maturity. This function works this relation in reverse, calculating $100 minus the return on investment given the discount rate. Treasury bills use an actual/360 basis.
Examples
If a T-Bill was purchased on February 15, 2000 with a maturity of July 1, 2000, at a discount rate of 8.5%, the purchase price is found by:
TBillPrice(DateValue(2000,2,15),DateValue(2000,7,1),0.085)
Returns $96.77 (rounded to the nearest cent).
Comments
This function is similar to the Excel function of the same name.
The functions DISC and TBillPrice are inverse relations. The discount rate DISC using the price returned by TBillPrice, a redemption value of $100 and using a basis of 2 (actual/360) is the same discount rate entered in the TBillPrice function. That is, r=DISC(a,b,TBillPrice(a,b,r),100) where a and b are dates and r is the discount rate.