Dax Function: TBILLPRICE
Category: Financial Functions
The TBILLPRICE function in Power BI calculates the price of a Treasury bill (T-bill) per $100 face value, based on its discount rate and the duration until maturity. This function is essential in financial modeling and valuation to determine the purchase price of short-term government securities.
Purpose
Provides the cost of acquiring a Treasury bill.
Converts the T-bill’s discount rate into an absolute price.
Standardizes pricing for T-bills to aid in portfolio analysis and financial planning.
Type of Calculations
Converts a T-bill’s discount rate and maturity information into a purchase price.
Adjusts for the days remaining until the maturity of the Treasury bill.
Practical Use Cases
Investment Valuation: Determine the purchase price of T-bills for investment.
Fixed-Income Portfolio Management: Evaluate the cost of acquiring short-term risk-free assets.
Treasury Bill Trading: Assist in the pricing of T-bills for secondary market transactions.
| Parameter | Type | Description |
|---|---|---|
settlement | Scalar | The settlement date of the Treasury bill (the date it is purchased by the investor). |
maturity | Scalar | The maturity date of the Treasury bill (the date it expires, and the investor receives the face value). |
discount | Scalar | The discount rate of the Treasury bill, expressed as a decimal (e.g., 0.03 for 3%). |
How Does TBILLPRICE Dax Works
Mathematical Principle
The TBILLPRICE function calculates the price using the following formula:
Where:
Discount: The T-bill’s discount rate.
DS: The number of days between the settlement date and the maturity date.
Key Points
Prices are adjusted to reflect a 360-day year, commonly used for short-term securities.
The formula computes the price by subtracting the discounted amount from the face value.
What Does It Return?
- Scalar Value: The price of the Treasury bill per $100 face value, calculated based on the discount rate and time to maturity.
When Should We Use It?
Buying T-Bills: Calculate the price of Treasury bills for direct investment.
Evaluating Short-Term Securities: Compare T-bill prices with other short-term investment options.
Risk Management: Use in strategies that require risk-free assets as a hedge.
Examples
Basic Usage :
A Treasury bill has a settlement date of January 1, 2025, a maturity date of April 1, 2025, and a discount rate of 2%. Calculate the price:
Result: 99.50 (price per $100 face value).
Column Usage
For a table of Treasury bills:
| T-Bill ID | Settlement | Maturity | Discount |
|---|---|---|---|
| 1 | 01/01/2025 | 04/01/2025 | 0.02 |
| 2 | 02/15/2025 | 05/15/2025 | 0.03 |
Add a calculated column for T-bill price:
Result: Computes the price of each Treasury bill.
Advanced Usage
Combine TBILLPRICE with filtering to identify undervalued T-bills:
Result: Finds the minimum price among T-bills priced below $99.75.
Tips and Tricks
Always use consistent date formats to prevent errors in settlement and maturity date calculations.
Ensure the discount rate is expressed as a decimal (e.g., 0.02 for 2%).
Settlement dates must precede maturity dates; otherwise, the function returns an error.
Incorrect formatting of the discount rate (e.g., using percentages instead of decimals) can lead to erroneous results.
Performance Impact of TBILLPRICE DAX Function:
Efficient for small datasets or single security analysis.
For large datasets, precompute prices in a calculated column to enhance performance.
Related Functions You Might Need
| Function | Description |
|---|---|
TBILLEQ | Calculates the bond-equivalent yield for a Treasury bill. |
YIELD | Determines the yield of a security with periodic interest payments. |
PRICE | Calculates the price of a security based on its yield. |
DISC | Computes the discount rate for a security. |
Want to Learn More?
For more information, check out the official Microsoft documentation for TBILLPRICE You can also experiment with this function in your Power BI reports to explore its capabilities.
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The TBILLPRICE function calculates the price of a Treasury bill per $100 face value based on its discount rate and maturity.
No, the function is specifically designed for short-term Treasury bills.
The function returns an error as the settlement date must precede the maturity date.
Yes, the discount rate should be entered as a decimal (e.g., 0.03 for 3%).
No, it is optimized for short-term Treasury bills. Use the PRICE function for other securities.
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