The TBILLPRICE function in Google Sheets is a crucial financial tool that helps users calculate the price of a U.S. Treasury Bill (T-Bill) based on its discount rate. This function assists investors and financial analysts in evaluating the pricing dynamics of T-Bills, which are short-term securities issued by the U.S. government.

Syntax

TBILLPRICE(settlement, maturity, discount)

• settlement: The date when the T-Bill is purchased.
• maturity: The date when the T-Bill matures.
• discount: The T-Bill’s discount rate expressed as a decimal.

Example #1

TBILLPRICE("2023-10-01", "2023-12-01", 0.02)

In this example, the function calculates the price of a T-Bill purchased on October 1, 2023, maturing on December 1, 2023, with a discount rate of 2%. The result might be approximately $980.00.

Example #2

TBILLPRICE("2023-10-15", "2024-01-15", 0.015)

This calculation determines the price of a T-Bill bought on October 15, 2023, due on January 15, 2024, with a discount rate of 1.5%. The result could be around $985.00.

Example #3

TBILLPRICE("2023-11-01", "2024-05-01", 0.025)

In this situation, the function assesses the price of a T-Bill acquired on November 1, 2023, that matures on May 1, 2024, with a 2.5% discount rate. The output might be near $970.00.

Error handling

• VALUE! This error occurs when one of the arguments is in a wrong format, such as an incorrect date format or non-numeric discount.
• NUM! This is returned when the calculation encounters invalid numeric results, such as when the discount rate is unreasonable or the dates are out of range.
• REF! This error indicates that one of the cell references in the function has become invalid, typically due to deleted cells.

Conclusion

The TBILLPRICE function is an essential component for financial modeling and investment analysis in Google Sheets. By accurately calculating the price of U.S. Treasury Bills based on specific parameters, users can make informed investment decisions during varied market conditions. Understanding its syntax and handling potential errors ensures that analysts can leverage it effectively.