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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.

Usage

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

=TBILLYIELD(settlement, maturity, price)
Parameters:
  1. settlement (required):
    The settlement date of the Treasury bill, represented as a date or a reference to a cell containing a date value. The settlement date is the date on which the buyer will take possession of the Treasury bill.
  2. maturity (required):
    The maturity date of the Treasury bill, represented as a date or a reference to a cell containing a date value. The maturity date is the date on which the Treasury bill will be redeemed.
  3. price (required):
    The price per $100 face value of the Treasury bill, represented as a number or a reference to a cell containing a number value.

Examples

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

Calculating the yield of a Treasury bill

To calculate the yield of a Treasury bill, you can use the TBILLYIELD function by specifying the settlement date, maturity date, and price of the bill.

Comparing Treasury bill yields

You can use the TBILLYIELD function to compare the yields of different Treasury bills, or to compare Treasury bills with other types of investments, such as stocks or bonds.

Analyzing short-term government securities

The TBILLYIELD function is commonly used in financial analysis to analyze short-term government securities, such as Treasury bills, and to make investment decisions based on their yields.

Common Mistakes

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

Incorrect date formatting

Make sure that the dates for settlement and maturity are formatted correctly, using the DATE function if necessary.

Invalid settlement or maturity date

Check that the settlement and maturity dates are valid, and that the maturity date is after the settlement date.

Incorrect price formatting

Ensure that the price is formatted correctly, using the appropriate decimal separator and currency symbol.

Missing arguments

Make sure that all three arguments (settlement, maturity, and price) are included in the formula.

Incorrect argument order

Ensure that the arguments are in the correct order (settlement, maturity, price).

Related Formulas

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

  • TREND

    The TREND formula is used to calculate future values based on historical data. It fits a straight line (using the method of least squares) to the arrays specified in the known_data_y and known_data_x parameters and then uses that line to calculate new y-values for the array specified in the new_data_x parameter. If b is set to TRUE, then the calculation will include the y-intercept of the line. This formula is commonly used in forecasting and trend analysis.

  • FORECAST

    The FORECAST function in Google Sheets is a statistical function that predicts a future value along a linear trend. It returns the predicted value for a chosen x value based on the linear regression of a set of known x and y values. This function is commonly used in finance to predict future values.

  • YIELD

    The YIELD function calculates the yield of a security that pays periodic interest. The yield is the annualized percentage rate returned on the bond, assuming the bond is held until maturity. This function is commonly used in finance and investment analysis.

  • PRICE

    The PRICE function calculates the price per $100 face value of a security that pays periodic interest. It is commonly used to determine the current value of a bond. The function takes the settlement date, maturity date, annual coupon rate, yield, redemption value, and frequency of coupon payments as input. It returns the price of the security, which is the sum of the present value of the coupon payments and the present value of the redemption value.

  • DURATION

    The DURATION function calculates the Macauley duration of a security paying periodic interest, such as a US Treasury Bond, based on expected yield. The Macauley duration is a measure of the sensitivity of the price of the security to changes in interest rates. This function is commonly used in finance and investment analysis.

Learn More

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