1. What is the T-bill Value Calculator?

The T-bill Value Calculator estimates the current value of a Malaysian Treasury bill based on its face value, yield, and days to maturity using the 365-day convention standard in Malaysia.

2. How Does the Calculator Work?

The calculator uses the T-bill valuation formula:

Where:

• \( Face\ Value \) — Nominal value at maturity (MYR)
• \( Yield \) — Annualized discount yield (decimal)
• \( Days \) — Days remaining until maturity
• \( 365 \) — Day count convention used in Malaysia

Explanation: The formula discounts the face value based on the time remaining and the current yield, using simple interest calculation.

3. Importance of T-bill Valuation

Details: Accurate T-bill valuation is crucial for investors to determine fair pricing, compare investment options, and manage fixed-income portfolios effectively.

4. Using the Calculator

Tips: Enter face value in MYR, yield as a decimal (e.g., 0.05 for 5%), and days to maturity (1-365). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why use 365-day convention in Malaysia?
A: Malaysia follows the 365-day convention for money market instruments, unlike some markets that use 360 days.

Q2: How does this differ from bond pricing?
A: T-bills use simple interest discounting while bonds typically use compound interest calculations.

Q3: What's the typical yield range for Malaysian T-bills?
A: Yields typically range between 2-4% but vary with monetary policy and market conditions.

Q4: Can this be used for secondary market T-bills?
A: Yes, the same formula applies regardless of whether it's a new issue or secondary market purchase.

Q5: How often are T-bills issued in Malaysia?
A: Bank Negara Malaysia issues T-bills regularly, typically with 3-month, 6-month, and 1-year maturities.