Syntax. TBILLPRICE(Settlement,Maturity,Discount)
Definition. This function returns the price of a discounted security as a percent, as if the par value was 100 monetary units. It is used for U.S. treasury bills.
Arguments
Settlement (required) The date when the ownership of the security changes
Maturity (required) The date of the repayment of the certified par value
Discount (required) The percent disagio of the par value of the security
There are the following requirements:
Settlement and Maturity require a date specification without a time: decimal places are truncated. Invalid date specifications return the
#VALUE!error.If Discount is not positive, TBILLPRICE() returns the
#NUMBER!error.The same error is generated if the settlement date lies past the maturity date or the maturity has more than a year of time difference from the settlement.
Background. You can calculate the price with a simple percentage calculation: The anticipative annual interest rate (disagio) is fractioned into the actual duration. The day counter works with 360 days per year, where each month has as many days as it has in the calendar.
This corresponds to the option Basis = 2 for those functions that use an argument, such as the functions in Table 15-2, shown earlier.
Example. In the sample files for this function, you can find some number experiments that show the equivalency to the function PRICEDISC(), if the calculation uses the day counter with Basis = 2.