Join Curt Frye for an in-depth discussion in this video TBILLYIELD: Calculating the yield of a Treasury bill, part of Excel 2010: Financial Functions.
When you evaluate a Treasury bill, you will occasionally know the start date,…end date, and price but not the yield.…If you know those first three values you can calculate the yield by using the…TBILLYIELD function.…To make that calculation you need to know three things.…First is the settlement date and that is the date that you take possession of the investment.…Then the maturity date which is the date that your original principle and any…accrued interest is due to you.…And then finally, you have the price.…
So the price in this case is $97.50 and that is the amount that you need to pay…to invest in this T-bill.…And the redemption value is assumed to be $100.…That's just an assumption that the function makes.…So now, we can click in cell C8 and create our formula.…So to start type an equal sign and then tbillyield, left parentheses,…and then we can enter in the cell references for these values.…
So settlement date is C3, comma,…maturity date C4, comma, and the price is in C5.…Type the right parentheses. Make sure that all of my arguments line up, they do and press Tab.…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Q: Where can I learn more about Excel formulas?
A: Discover more on this topic by visiting Excel formulas on lynda.com.
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Appropriate for all
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 5s
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