The TBILLYIELD function in Excel calculates the yield on a Treasury bill (T-bill) investment. The function takes into account the purchase price, the maturity date, and the yield rate. The TBILLYIELD function can be used to calculate the return on a T-bill investment over a period of time.
The syntax of the TBILLYIELD function in Excel is as follows:
=TBILLYIELD(settlement, maturity, rate, pr)
settlement is the date on which the security is purchased maturity is the date on which the security matures rate is the annual interest rate of the security pr is the price of the security
An example of how to use the TBILLYIELD function in Excel is to calculate the yield on a Treasury bill. The function takes the maturity date, the face value, and the yield as input and calculates the yield as a percentage.
There are a few instances when you should not use TBILLYIELD in Excel. First, if you are looking at historical data, TBILLYIELD will not be accurate because it uses the most recent Treasury security auction to calculate the yield. Second, if you are using a custom yield curve, TBILLYIELD will not be accurate because it uses the most recent Treasury security auction to calculate the yield. Lastly, if you are using a non-US currency, TBILLYIELD will not be accurate because it uses the most recent Treasury security auction to calculate the yield.
The formulae below are all similar to TBILLYIELD in Excel. They calculate the yield on a Treasury bill, using the same inputs.
=YIELD(settlement, maturity, coupon, pris) =YIELD(A1, A2, A3, A4) =YIELD(B1, B2, B3, B4) =YIELD(C1, C2, C3, C4) =YIELD(D1, D2, D3, D4) =YIELD(E1, E2, E3, E4) =YIELD(F1, F2, F3, F4) =YIELD(G1, G2, G3, G4) =YIELD(H1, H2, H3, H4) =YIELD(I1, I2, I3, I4) =YIELD(J1, J2, J3, J4)
