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In the article below, Mytour introduces TBILLEQ Function in Excel to readers, which helps calculate profits corresponding to bonds in the treasury.
Unlocking the Potential of TBILLEQ Function in Excel
How to Use TBILLEQ Function in Excel
1. Description and Syntax Usage
This function calculates the profit corresponding to bonds in the treasury.
Syntax:
TBILLEQ(settlement, maturity, discount)
Where:
- Settlement: The settlement date of the security, which is the day after the issuance date of the security sold to the buyer, is a required parameter.
- Maturity: The maturity date or expiration date of the security, is a required parameter.
- Discount: The discount rate of the security.
Note:
- The TBILLEQ function computes according to the formula:
- It is recommended to use the Date (year, month, day) function when inputting date values.
- If Settlement and Maturity are not valid dates -> the function will return the error value #VALUE!
- If Discount ≤ 0 -> the function returns the error value #NUM!
- If Settlement > Maturity or Settlement - Maturity > 12 months -> the function returns the error value #NUM!
2. Specific Scenario Examples
Suppose you want to calculate the profit of a bond knowing that the settlement date is 1/1/2018, the maturity date is 1/12/2018, and the discount rate is 8.5%.
Step 1: In the cell where you want to calculate the bond profit -> enter the formula: =TBILLEQ(A3,B3,C3)
Step 2: Press Enter -> the bond profit with an 8.5% discount rate will be:
In case you input a maturity date more than 1 year after the settlement date -> the function will return the error value #NUM!
If Settlement and Maturity (settlement date and maturity date) are not valid dates -> the function will return the error value #VALUE!
Next, if Discount ≤ 0 -> the function returns the error value #NUM!
Here is how to use and some special cases of the TBILLEQ Function in Excel. Using this computational function helps you calculate profits corresponding to bonds in the treasury. Wishing you success!
The TBILLYIELD function is also a very important function in Excel. If you forget the syntax of the TBILLYIELD function, then refer to the previous article by Mytour to refresh your memory.
