Documentation/Calc Functions/TBILLPRICE

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    Function name:

    TBILLPRICE

    Category:

    Financial Analysis

    Summary:

    Calculates the price per 100 currency units face value for a US Treasury bill (sometimes known as a T-Bill), given its settlement date, maturity date, and discount rate. Such bills are typically sold by auction, with investors buying at a specified discount rate.

    Treasury bills are short-term securities, issued by many governments of the world. A Treasury bill is purchased at a discount to its face value on the settlement date and pays no interest. It is subsequently sold at its full face value on the maturity date, which is within one year in most cases.

    Note pin.svg

    Note:
    The logic underlying the TBILLPRICE function relates specifically to US Treasury bills. Therefore, it may not be applicable for Treasury bills issued by other governments.

    Syntax:

    TBILLPRICE(Settlement; Maturity; Discount)

    Returns:

    Returns a real number, which is the price per 100 currency units face value for a Treasury bill having the specified characteristics.

    Arguments:

    Settlement is a date (in quotation marks) or a date-time serial number, or a reference to a cell containing one of those types, which specifies when a trade is "settled". On this date the transfer of the Treasury bill to the buyer is completed, and the buyer makes the appropriate payment.

    Maturity is a date (in quotation marks) or a date-time serial number, or a reference to a cell containing one of those types, which specifies when the Treasury bill matures. On maturity, the holder is repaid the full value of the bill.

    Discount is a positive real number (expressed as a percentage, such as 2.5%, or a decimal fraction, such as 0.025), or a reference to a cell containing that number, which is the discount rate. An auction determines the discount rate to be paid for each US Treasury bill issue.

    • If either Maturity or Settlement is not a valid date, then TBILLPRICE reports a #VALUE! error.
    • If either Maturity or Settlement contain time components, then these are ignored by TBILLPRICE.
    • If Discount is non-numeric, then TBILLPRICE reports a #VALUE! error.
    • If Discount is less than or equal to 0.0, then TBILLPRICE returns an invalid argument error (Err:502).
    • If the Settlement date is after the Maturity date, then TBILLPRICE returns an invalid argument error (Err:502).

    Additional details:

    • The formula for TBILLPRICE is:
    [math]\displaystyle{ \text{TBILLPRICE}~=~100 \:\times\:\left(1 \:–\: (Discount \:\times\: \text{YEARFRAC}(Settlement; Maturity; 0))\right) }[/math]

    Examples:

    Formula Description Returns
    =TBILLPRICE(A1; A2; A3) where cell A1 contains the date 2022-11-15, A2 contains the date 2023-03-31, and A3 contains the value 5%. Here the function calculates the price per 100 currency units face value for the specified Treasury bill, returning the value 98.1111111111111 currency units. 98.1111111111111
    =TBILLPRICE(DATE(2022; 11; 15); DATE(2023; 3; 31); 5%) Here the function calculates the price per 100 currency units face value for the same Treasury bill as in the previous example, but utilizes the DATE function instead of typing formatted date values. The function again returns the value 98.1111111111111 currency units. 98.1111111111111
    =TBILLPRICE("1999-03-31"; "1999-06-01"; 0.0914) Here the function calculates the price per 100 currency units face value for the specified Treasury bill, returning the value 98.4258888888889 currency units. 98.4258888888889

    Related LibreOffice functions:

    TBILLEQ

    TBILLYIELD

    ODF standard:

    Section 6.12.48, part 2

    Related (or similar) Excel functions:

    TBILLPRICE