# TBILLEQ

The `TBILLEQ` function calculates the equivalent annualized yield of a US Treasury bill based on its discount rate. It is commonly used to compare the yields of US Treasury bills of different maturities. The function returns a decimal value representing the annualized yield.

## Usage

Use the `TBILLEQ` formula with the syntax shown below, it has 3 required parameters:

Parameters:
1. settlement (required):
The date the US Treasury bill was purchased.
2. maturity (required):
The date the US Treasury bill matures.
3. discount (required):
The discount rate of the US Treasury bill.

## Examples

Here are a few example use cases that explain how to use the `TBILLEQ` formula in Google Sheets.

### Comparing Treasury bill yields

Use `TBILLEQ` to compare the yields of US Treasury bills of different maturities. This can help investors determine which Treasury bills offer the highest yields.

### Estimating annualized yield

Use `TBILLEQ` to estimate the annualized yield of a US Treasury bill based on its discount rate. This can help investors understand the potential return on investment of a given Treasury bill.

### Analyzing Treasury bill prices

Use `TBILLEQ` to analyze the prices of US Treasury bills of different maturities. This can help investors understand how changes in discount rates impact Treasury bill prices.

## Common Mistakes

`TBILLEQ` not working? Here are some common mistakes people make when using the `TBILLEQ` Google Sheets Formula:

### Inputting incorrect dates

One common mistake is inputting incorrect dates for the settlement and maturity dates, which can lead to inaccurate results.

### Using incorrect units for discount rate

Another mistake is using incorrect units for the discount rate, which should be expressed as a percentage.

### Forgetting to adjust for days to maturity

It's important to adjust for the number of days to maturity when using `TBILLEQ`, as the function assumes a 365-day year by default.

The following functions are similar to `TBILLEQ` or are often used with it in a formula:

• `TBILLPRICE`

The `TBILLPRICE` formula calculates the price per \$100 face value of a US Treasury bill. This formula is most commonly used by investors to determine the fair value of a Treasury bill before buying or selling it on the secondary market.

• `TBILLYIELD`

The `TBILLYIELD` function calculates the yield of a Treasury bill based on its price. It returns the annual yield of a Treasury bill (a type of short-term government security), based on its price, maturity, and settlement dates. This function is commonly used in financial analysis to compare the yield of Treasury bills with other types of investments.

You can learn more about the `TBILLEQ` Google Sheets function on Google Support.