Its calculates the price per $100 face value of a U.S. Treasury bill (T-bill) based on its discount rate. T-bills are short-term securities that are issued at a discount and mature at par value.
Syntax
TBILLPRICE(Settlement; Maturity; Discount)
Arguments
| Argument | Required | Description | Validation Rules |
| Settlement | Yes | The trade settlement date | Must be valid date < Maturity |
| Maturity | Yes | The maturity/redemption date | Must be ≤ 1 year after Settlement |
| Discount | Yes | The annual discount rate (decimal) | Must be > 0 |
Error Conditions
- #VALUE!: Invalid date format
- #NUM!: If:
- Settlement ≥ Maturity
- Maturity > 1 year after Settlement
- Discount ≤ 0
Calculation Method
The price is calculated using:
Price = 100 × (1 – Discount × D/360)
Where:
- D = Number of days between Settlement and Maturity
- Uses actual calendar days (Basis = 2 equivalent)
Example
Key Features
- Day Count Convention: Uses actual/360 (Basis = 2)
- Output Format: Returns price as percentage of par value
- Complementary Functions:
- TBILLYIELD(): Calculates yield from price
- PRICEDISC(): Similar but allows different day count bases