3 Month T Bill Calculator - Savvy Calculator

Introduction

Calculating the yield on a 3 Month T-Bill is crucial for investors seeking short-term investment opportunities. To simplify this process, we’ll provide a handy calculator using HTML and JavaScript, ensuring accuracy and ease of use.

How to Use

Input the T-Bill’s Face Value.
Enter the Purchase Price of the T-Bill.
Input the Number of Days to Maturity.
Click the “Calculate” button to obtain the yield.

Formula

The formula for calculating the yield on a 3 Month T-Bill is:

$Yi e l d = (F a ce Va l u e F a ce Va l u e - P u rc ha se P r i ce) \times (N u mb ero f D a ys t o M a t u r i t y 365) \times 100$

Example

Let’s consider a 3 Month T-Bill with a Face Value of $10,000, purchased for $9,800 with 90 days to maturity.

$Yi e l d = (10 , 000 10 , 000 - 9 , 800) \times (90 365) \times 100$

$Yi e l d \approx 2.73%$

FAQs

Q: Why is the yield important for investors?

A: The yield helps investors assess the return on their investment and make informed decisions based on short-term market conditions.

Q: Can this calculator be used for other securities?

A: No, this calculator is specifically designed for 3 Month T-Bills. The formula may vary for other securities.

Conclusion

Investors can now easily calculate the yield on 3 Month T-Bills using our accurate and user-friendly calculator. This tool provides a quick assessment of potential returns, aiding in informed investment decisions.