TBILLPRICE


Returns the issue price for a US Treasury bill, per $100 par value, given a discount rate.

Syntax:

TBILLPRICE(settlementdate, maturitydate, discountrate)

settlementdate: the settlement (purchase) date of the Treasury bill.
maturitydate: the maturity (redemption) date of the Treasury bill.
discountrate: the discount rate of the Treasury bill.
A Treasury bill is a short term (up to a year) Government security, sold at a discount to its par value (face value). It pays no interest and is redeemed at par value.
The Treasury bill here has a 360 day year basis.
The formula for TBILLPRICE is :
100 * ( 1 - (discountrate * number_of_days_in_the_term / 360) )
where number_of_days_in_the_term are the actual number of days between settlementdate and maturitydate.

An error results if the term given is not less than one year.

Example:

TBILLPRICE("2008-07-14", "2009-01-14", 4%)
returns approximately 97.99.






 
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