Quick Answer

TBILLEQ Function

Calculates the bond-equivalent yield for a Treasury bill.

Syntax

TBILLEQ

(settlement, maturity, discount)

Parameters

Parameter	Description	Required
settlement	Date the security is purchased.	Required
maturity	Date the security expires.	Required
discount	Discount rate of the T-bill.	Required

Basic Example

Bond-equivalent yield for a T-bill

=TBILLEQ(DATE(2024,1,1), DATE(2024,7,1), 0.05)

Result5.18%

Converts a 5% T-bill discount rate to a bond-equivalent yield of about 5.18%.

Advanced Examples

Example 1: Short-term T-bill

Money market analysis

Bond-equivalent yield for a 3-month T-bill

=TBILLEQ(DATE(2024,1,1), DATE(2024,4,1), 0.05)

Result: Bond-equivalent yield

For short-term T-bills, the conversion can be significant.

How TBILLEQ Works

TBILLEQ converts the T-bill discount rate to a bond-equivalent yield using the formula (365 * discount) / (360 - discount * days to maturity). This allows comparison with coupon-bearing bonds.

1

Enter settlement

Type the settlement

2

Enter maturity

Type the maturity

3

Enter discount

Type the discount

4

Calculate

Press Enter to get the result.

Important Notes & Limitations

Maturity must be within one year of settlement.
Discount is entered as a decimal.
Uses actual/365 day count for the conversion.

Common Errors & Fixes

#NUM! errorMaturity is more than one year after settlement or discount is invalid.

Fix: Verify dates are within one year and discount is a valid decimal.

#VALUE! errorDates are not recognized.

Fix: Use DATE function or valid date serial numbers.

Download Practice File

Practice TBILLEQ with Real Data

Download a sample CSV file with pre-populated data and practice exercises for the TBILLEQ function. Works in both Excel and Google Sheets.

Works in Google SheetsCompatible with ExcelIncludes exercises

File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps

Related Functions

ACCRINT

Calculates accrued interest for a security that pays periodic interest.

ACCRINTM

Calculates accrued interest for a security that pays interest at maturity.

AMORDEGRC

Calculates depreciation for a specific period using the French declining balance method.

AMORLINC

Calculates depreciation for a specific period using the French straight-line method.

COUPDAYBS

Calculates the number of days from the beginning of the coupon period to the settlement date.

COUPDAYS

Calculates the number of days in the coupon period that contains the settlement date.

Frequently Asked Questions

What is the bond-equivalent yield?

It is a yield measure that allows comparison of T-bills with coupon-bearing bonds.

What is the difference between TBILLEQ and TBILLYIELD?

TBILLEQ converts the discount rate to a bond-equivalent yield. TBILLYIELD calculates the yield based on the price.