Documentation/Calc Functions/TBILLYIELD

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    Function name:

    TBILLYIELD

    Category:

    Financial Analysis

    Summary:

    Calculates the money market yield of a US Treasury bill (sometimes known as a T-Bill). This is an annualized yield based on a 360-day year and simple interest.

    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 TBILLYIELD function relates specifically to US Treasury bills. Therefore, it may not be applicable for Treasury bills issued by other governments.

    Syntax:

    TBILLYIELD(Settlement; Maturity; Price)

    Returns:

    Returns a real number, which is the money market yield for a Treasury bill having the specified characteristics. The number returned is a percentage expressed as a decimal fraction (for example, the returned value 0.075 would represent 7.5%).

    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.

    Price is a positive real number, or a reference to a cell containing that number, which is the price of the Treasury bill per 100 currency units face value.

    • If either Maturity or Settlement is not a valid date, then TBILLYIELD reports a #VALUE! error.
    • If either Maturity or Settlement contain time components, then these are ignored by TBILLYIELD.
    • If Price is non-numeric, then TBILLYIELD reports a #VALUE! error.
    • If Price is less than or equal to 0.0, then TBILLYIELD returns an invalid argument error (Err:502).
    • If the Settlement date is not before the Maturity date, then TBILLYIELD returns an invalid argument error (Err:502).
    • If [math]\displaystyle{ \text{DAYS360}(Settlement;\:Maturity; \: \text{TRUE}()) \: \gt \:360 }[/math], then Maturity is too long after Settlement and TBILLYIELD returns an invalid argument error (Err:502).

    Additional details:

    • The formula for TBILLYIELD is:
    [math]\displaystyle{ \text{TBILLYIELD}~=~\frac{100-Price}{Price}\:\times\:\frac{360}{days} }[/math]
    where days is the number of days between the settlement (purchase) date and maturity (redemption) date. days is calculated using a day count convention that assumes the actual number of days in each month, with the year comprising 360 days.

    Examples:

    Formula Description Returns
    =TBILLYIELD(A1; A2; A3) where cell A1 contains the date 2022-11-15, A2 contains the date 2023-03-31, and A3 contains the value 98.0. Here the function calculates the money market yield for the specified Treasury bill, returning the value 0.0536272903321913 (5.36%). 0.0536272903321913
    =TBILLYIELD(DATE(2022; 11; 15); DATE(2023; 3; 31); 98.0) Here the function calculates the money market yield 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 0.0536272903321913 (5.36%). 0.0536272903321913
    =TBILLYIELD("1999-03-31"; "1999-06-01"; 98.5) Here the function calculates the money market yield for the specified Treasury bill, returning the value 0.0884231210086782 (8.84%). 0.0884231210086782

    Related LibreOffice functions:

    TBILLEQ

    TBILLPRICE

    ODF standard:

    Section 6.12.49, part 2

    Related (or similar) Excel functions:

    TBILLYIELD