# How to use the TBILLYIELD function

**What is the TBILLYIELD function?**

The TBILLYIELD function calculates the yield for a Treasury bill.

**What is the yield of a treasury bill?**

The yield of a treasury bill (T-bill) is the annualized percentage return earned on investing in the T-bill, calculated based on the bill's purchase price at auction and its par value paid at maturity. For example, if a 26-week T-bill is purchased for $980 with a $1000 par value, and held to maturity, the $20 profit represents an annual yield of approximately 2.04% over the 6 month term.

**What is a treasury bill?**

A treasury bill, or T-bill, is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of 1 year or less that is sold at a discount from par in regular auctions.

**Excel functions for bonds and treasury bills**

Function |
Description |

TBILLEQ |
Returns the bond-equivalent yield for a Treasury bill |

TBILLPRICE |
Returns the price per $100 face value for a Treasury bill |

TBILLYIELD | Returns the yield for a Treasury bill |

ACCRINT | Returns the accrued interest for a security that pays periodic interest |

ACCRINTM | Returns the accrued interest for a security that pays interest at maturity |

DURATION | Returns the annual duration of a security with periodic interest payments |

MDURATION | Returns the Macauley modified duration for a security with an assumed par value of $100 |

DISC | Returns the discount rate for a security |

INTRATE | Returns the interest rate for a fully invested security |

### TBILLYIELD function Syntax

TBILLYIELD(*settlement*, *maturity*, *pr*)

### TBILLYIELD function Arguments

settlement |
Required. The Treasury bill's settlement date which is the date after the issue date. |

maturity |
Required. The date when the security expires. |

pr |
Required. The Treasury bill's price per $100 face value (par amount). |

**What is the Treasury bill's settlement date?**

The date after the issue date. A Treasury bill's settlement date is the date 1 business day after the auction when payment must be received and the bill is delivered to the buyer's account in exchange for the purchase price.

**What is the Treasury bill's maturity?**

The maturity date of a Treasury bill is the date when the bill's term expires, typically in 4, 8, 13, 26, or 52 weeks, and the Treasury repays the par value to the investor.

**What is the par amount or face value of a treasury bill?**

The par amount or face value of a treasury bill is the amount the bill will be redeemed for at maturity, typically in denominations of $1,000 up to $5 million for institutional investors.

For example, a $1,000 par value T-bill will pay $1,000 at maturity.

### TBILLYIELD function example 1

Formula in cell C6:

### TBILLYIELD function example 2

Treasury bills are issued at a discount from the face value, the interest paid is the face value - purchase price.

Keep in mind to use the DATE function if you enter dates in the function instead of using cell references.

For example,

Date arguments are truncated to integers.

### TBILLYIELD function not working

The TBILLYIELD function returns:

- #VALUE! error ifÂ
*settlement*or*Â maturityÂ*is not a valid data type. - #NUM! error if
*pr*<=0'

### How is the TBILLYIELD function calculated

Calculation formula:

DSM = days between *settlement* to *maturity* ignoring *maturity* date that is more than a year after *settlement*.

### Functions in 'Financial' category

The TBILLYIELD function function is one of 29 functions in the 'Financial' category.

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