Excel 2000 in a Nutshell

Name

TBILLEQ

Synopsis

You can use TBILLEQ (an Analysis ToolPak function) to determine the bond-equivalent interest earned (yield) of a Treasury Bill.

To Calculate

=TBILLEQ(Settlement, Maturity, Discount)

All arguments must have values for this function.

Discount

A numeric value that represents the discount rate for the Treasury Bill. For example, if the Treasury Bill has a discount rate of 4.5%, the value of this argument is 0.045.

Example

Figure 12-24 illustrates how you can use TBILLEQ to determine the bond-equivalent interest rate for a Treasury Bill. This example also shows how you can determine the face value of the Treasury Bill using TBILLPRICE and determine the yield of the Treasury Bill with TBILLYIELD.

Figure 12-24. Excel provides three functions for working with Treasury Bills: TBILLEQ, TBILLPRICE, and TBILLYIELD