Calculates the annual return on a treasury bill. A treasury bill is purchased on the settlement date and sold at the full par value on the maturity date, that must fall within the same year. A discount is deducted from the purchase price.
TBILLEQ(Settlement; Maturity; Discount)
Settlement is the date of purchase of the security.
Maturity is the date on which the security matures (expires).
Discount is the percentage discount on acquisition of the security.
Settlement date: March 31 1999, maturity date: June 1 1999, discount: 9.14 per cent.
The return on the treasury bill corresponding to a security is worked out as follows:
=TBILLEQ("1999-03-31";"1999-06-01"; 0.0914) returns 0.094151 or 9.4151 per cent.