Easy-to-follow video tutorials help you learn software, creative, and business skills.Become a member
When you evaluate a treasury bill which is usually called a T-bill, you should determine the fair market value of the investment. In Excel you can use the TBILLPRICE function to find that value. To find the price of a T-bill you need know three separate things. The first is the settlement date and the settlement date is the date that you take possession of the investment. Then you have the maturity date and that is the date that the interest plus your original principle is due. And then finally you have the discount rate which is the annual percentage rate assigned to the investment.
So to find the fair market price of that investment, you can click in cell C8, type an equal sign, and then type in the name of the function and that is tbillprice, then a left parenthesis. And now we can type in the cell references for the arguments. So we have settlement date in C3, comma, maturity date C4, comma, and then the discount rate, which is in C5, and a right parenthesis to close-up the function.
Everything looks good. And when I press Tab we see that the T-bill price for this investment should be $90.93. Now sometimes it can happen that you evaluate a T-bill and your formula displays a NUM error. If that's the case you should check your settlement date and your maturity date. T-bills have a life of one year or less so you might have entered a date incorrectly.
Get unlimited access to all courses for just $25/month.Become a member
Access exercise files from a button right under the course name.
Search within course videos and transcripts, and jump right to the results.
Remove icons showing you already watched videos if you want to start over.
Make the video wide, narrow, full-screen, or pop the player out of the page into its own window.
Click on text in the transcript to jump to that spot in the video. As the video plays, the relevant spot in the transcript will be highlighted.
Your file was successfully uploaded.