The TBILLYIELD function in Google Sheets is designed to calculate the yield of U.S. Treasury Bills (T-Bills) based on their purchase price. This function is essential for investors who want to assess potential earnings from these debt securities without the complexities involved in traditional bond yield calculations.

Syntax

=TBILLYIELD(settlement, maturity, price) 

• settlement: The date when the T-Bill is purchased.
• maturity: The date when the T-Bill matures.
• price: The price paid for the T-Bill expressed as a percentage of the face value.

Example #1

=TBILLYIELD(DATE(2023,10,1), DATE(2024,10,1), 98.5)

This function would return the yield for a T-Bill bought on October 1, 2023, maturing on October 1, 2024, at a price of 98.5%. An example result might be 0.0386 or 3.86%.

Example #2

=TBILLYIELD(DATE(2023,5,15), DATE(2023,11,15), 99)

In this case, this function calculates the yield for a T-Bill purchased on May 15, 2023, maturing on November 15, 2023, at a price of 99%. A possible output could be 0.0393 or 3.93%.

Example #3

=TBILLYIELD(DATE(2023,1,1), DATE(2024,1,1), 97.25)

This example computes the yield for a T-Bill bought on January 1, 2023, maturing on January 1, 2024, at a price of 97.25%. The result could be around 0.0421 or 4.21%.

Error handling

• VALUE! – This error appears if any of the parameters are not in the correct date or numeric format.
• NUM! – Indicates that the price is not valid, as it must be a numerical value between 0 and 100.
• REF! – Occurs when one of the referenced cells is not valid, such as using a non-date cell for settlement or maturity.

Conclusion

The TBILLYIELD function is a valuable tool for anyone dealing with U.S. Treasury Bills, enabling effective yield calculations based on purchase price and maturity dates. By understanding its parameters and potential error messages, users can enhance their investment analysis and decision-making processes.