TBILLPRICE: Calculating the price for a Treasury bill


show more TBILLPRICE: Calculating the price for a Treasury bill provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth show less
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TBILLPRICE: Calculating the price for a Treasury bill

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.

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TBILLPRICE: Calculating the price for a Treasury bill
Video duration: 1m 31s 2h 18m Intermediate

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TBILLPRICE: Calculating the price for a Treasury bill provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth

Subjects:
Business IT
Software:
Excel
Author:
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