# tbillyield2disc

Convert Treasury bill yield to equivalent discount

## Syntax

``Discount = tbillyield2disc(Yield,Settle,Maturity)``
``Discount = tbillyield2disc(___,Type)``

## Description

example

````Discount = tbillyield2disc(Yield,Settle,Maturity)` converts the yield on some Treasury bills into their respective discount rates.```

example

````Discount = tbillyield2disc(___,Type)` adds an optional argument for `Type`. ```

## Examples

collapse all

Given a Treasury bill with these characteristics, compute the discount rate.

```Yield = 0.0497; Settle = '01-Oct-02'; Maturity = '31-Mar-03'; Discount = tbillyield2disc(Yield,Settle,Maturity)```
```Discount = 0.0485 ```

Given a Treasury bill with these characteristics, compute the discount rate using datetime inputs.

```Yield = 0.0497; Settle = datetime('01-Oct-2002','Locale','en_US'); Maturity = datetime('31-Mar-2003','Locale','en_US'); Discount = tbillyield2disc(Yield,Settle,Maturity)```
```Discount = 0.0485 ```

## Input Arguments

collapse all

Yield of Treasury bills, specified as a scalar of a `NTBILLS`-by-`1` vector of decimal values.

Data Types: `double`

Settlement date of the Treasury bill, specified as a scalar or a `NTBILLS`-by-`1` vector of serial date numbers, date character vectors, or datetime arrays.

Data Types: `double` | `char` | `datetime`

Maturity date of the Treasury bill, specified as a scalar or a `NTBILLS`-by-`1` vector of serial date numbers, date character vectors, or datetime arrays.

Data Types: `double` | `char` | `datetime`

(Optional) Yield type (determines how to interpret values entered in `Yield`), specified as a numeric value of `1` or `2` using a scalar or a `NTBILLS`-by-`1` vector.

Note

The bond-equivalent yield basis is actual/365. The money-market yield basis is actual/360.

Data Types: `double`

## Output Arguments

collapse all

Discount rates of the Treasury bills, returned as a `NTBILLS`-by-`1` vector.

## References

[1] SIA Fixed Income Securities Formulas for Price, Yield, and Accrued Interest. Volume 1, 3rd edition, pp. 44–45.

[2] Krgin, D. Handbook of Global Fixed Income Calculations. Wiley, 2002.

[3] Stigum, M., Robinson, F. Money Market and Bond Calculation. McGraw-Hill, 1996.

## Version History

Introduced before R2006a