TBILLPRICE: Google Sheets formulas explained

Hey there, fellow spreadsheet enthusiasts! Are you ready to learn about one of my favorite Google Sheets formulas? We're talking about TBILLPRICE, folks! I know, I know, I'm a little too excited about this, but let me tell you, once you get the hang of it, you'll be just as hyped. So, let's dive in.

What is TBILLPRICE?

First things first, let's define what TBILLPRICE is. TBILLPRICE is a Google Sheets formula that calculates the price of a U.S. Treasury bill. If you're into investing in short-term securities, this will be your go-to formula. It not only helps you calculate the price of your Treasury bills but also helps you compare them with other investment options. Isn't that neat?

How to use TBILLPRICE

Okay, now that we know what TBILLPRICE is, let's talk about how to use it. Here's the syntax:

=TBILLPRICE(settlement, maturity, discount)

Still with me? Great! Let me break down the parameters for you:

• Settlement: This is the date when you're buying the Treasury bill. You can enter this directly in the formula or reference a cell that contains the date.
• Maturity: This is the maturity date of the Treasury bill. Again, you can enter this directly in the formula or reference a cell that contains the date.
• Discount: This is the discount rate of the Treasury bill. You can enter this as a percentage (e.g. 0.25%) or as a decimal (e.g. 0.0025).

Once you have all the parameters in place, hit enter, and voila! You get the price of your Treasury bill. Pretty cool, huh?

Real-world application: Example

Okay, let's put TBILLPRICE to work with a real-world example. Let's say you're considering investing in a 91-day Treasury bill. You plan to buy it on June 1, 2022, and it matures on September 1, 2022. The discount rate is 0.25%. Here's how you can use TBILLPRICE to calculate the price:

=TBILLPRICE("6/1/2022", "9/1/2022", 0.25%)

Hit enter, and you get the price of your Treasury bill. Simple, isn't it?

Conclusion

Well, that's it, folks! We've covered TBILLPRICE, one of my favorite Google Sheets formulas. As you can see, it's a powerful tool for anyone who invests in short-term securities. With just a few parameters, you can get the price of your Treasury bills and compare them with other investment options. And who knows? Maybe someday, you'll be just as excited as I am about TBILLPRICE. Happy investing!