# TBILLPRICE Excel Formula

When talking about Microsoft Excel the first thing that users think of is a program that helps organize and save data. This is also a great database for companies and businesses. But aside from this, the program is also a great tool in computing certain mathematical problems. Proof to this is the different functions of the program that helps computations be done with fewer efforts. One of the programs used for accounting and financial computation is the TBILLPRICE function. This is the function that returns the cost of every $100 par value of a certain Treasury bill.

In order to come up with accurate result, right formula or syntax should be type in correctly. For TBILLPRICE the formula is:

**=TBILLPRICE(settlement, maturity, discount)**

**Wherein the arguments are:**

- settlement – refers to the date when the security was purchased by the buyer.
- maturity – the security expiration date
- discount – this is the rate of the discount of the security

**Things to note on:**

User must take note of certain issues in using the function to acquire accurate and correct answer. So, to help users the following are some of the details to look on:

- Only the argument date part should be utilized for maturity and settlement. The time aspect should be neglected. The maturity value needs to be greater than the value of settlement.
- The rate of discount should be greater than or equal to zero and should be typically less than one. Therefore, the value should be a non-numerical number form.
- Null values on the formula are prohibited.
- The dates used in the function must be in reference to cell that contains the date or dates revisited from a certain formula or function.

**Common Error**

It is usual that while using the function there are some errors incurred. In order to handle them easily, here are the common mistakes usually encountered by the user

- #NUM! – this appears once the date of the settlement is greater than or equal to the date of maturity. Or, the maturity date is greater than 1 year after the period of settlement. It will also appear once the value of the discount is less than or equal to zero.
- #VALUE! – this happens once the entered value of the syntax are non-integral numbers. This also comes out when the value of maturity and settlement are not applicable dates.
- #NAME? – this frequently appears when the add-in Analysis ToolPak is disabled from the Excel. So, before placing any data on the worksheet the add-in should be enabled first.

**TBILLPRICE Example**

Understanding the example will let you learn how the function is used.

What is the cost per $100 par vale of Treasury bill that has settlement date on June 24, 2011, maturity date on October 22, 1011 and discount rate of 5%?

In using Excel program, input first the data on the worksheet. Ensure that each data has corresponding cell.

**Given:**

- settlement - June 24, 2011
- maturity – October 22, 2011
- discount – 5% or 0.05

Once the given is placed on the cells, click the cell where to appear the answer. From the cell, type the syntax of TBILLRICE and click the reference cell of every value required on the argument. After placing all the value, press the enter key. The answer to appear is $98.33, so this is the cost of a Treasury bill per 100 face values.

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