The Federal Reserve expresses the yield on Treasury bills (T-Bills) by dividing the interest paid by the final value paid at maturity. Other bond issuers express the yield on the bond by dividing the interest by the amount invested (as expected). The 3 T-bill related functions in Excel are provided so that you can compare T-Bills to other bonds.

##### Using the TBILLEQ function:

The arguments for the TBILLEQ function are:

Argument | Required? | Description |
---|---|---|

settlement | Required | The Treasury bill's settlement date. The security settlement date is the date after the issue date when the Treasury bill is traded to the buyer. |

maturity | Required | The Treasury bill's maturity date. The maturity date is the date when the Treasury bill expires. |

discount | Required | The Treasury bill's discount rate. |

##### A few more things:

• Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2014 is serial number 41640 because it is 41,640 days after January 1, 1900. |

• settlement and maturity are truncated to integers. |

• If settlement or maturity is not a valid date, TBILLEQ returns the #VALUE! error value. |

• If discount ≤ 0, TBILLEQ returns the #NUM! error value. |

• If settlement > maturity, or if maturity is more than one year after settlement, TBILLEQ returns the #NUM! error value |

• TBILLEQ is calculated as TBILLEQ = (365 x rate)/(360-(rate x DSM)), where DSM is the number of days between settlement and maturity computed according to the 360 days per year basis. |