DOLLARDE Function
Converts a dollar value in fractional notation into a dollar value expressed in decimal notation
Converts a dollar value in fractional notation into a dollar value expressed in decimal notation
The DOLLARDE Function is a Financial function. It helps in converting a dollar value in fractional notation into a dollar value expressed in decimal notation. DOLLARDE will divide the fraction part of the value by an integer specified by the user. It is used in pricing US treasury bonds quotes, which are priced to the nearest 1/32 of a dollar. Learn more from the New York Fed.
The function is very useful for financial analysts when doing financial reports using stock market quotes, as fractional dollars are used for security prices. DOLLARDE is available from MS Excel 2007.
=DOLLARDE(fractional_dollar, fraction)
The DOLLARDE function uses the following arguments:
The function will divide the fraction part of the value by an integer. For example, if we want the security’s price to be expressed to a precision of 1/16 of a dollar, we divide the fraction part by 16. In this case, 1.2 represents $2.25 ($1 + 2/16 = $2.25).
To understand the uses of the DOLLARDE function, let’s consider a few examples:
Let’s see how the function works using the different examples shown below:
Data | Formula used | Description |
---|---|---|
1.2,16 | =DOLLARDE(1.2,16) | Converts the decimal number 1.2, read as 1 and 20/16. As the fraction value is 16, the price has a precision of 1/16 of a dollar. |
1.025,16 | =DOLLARDE(1.025,16) | Converts the decimal number 1.025, read as 1 and 2.5/16. As the fraction value is 16, the price has a precision of 1/16 of a dollar. |
1.1,32 | =DOLLARDE(1.1,32) | Converts 1.1, read as 1 and 10/32, to a decimal number (1.3125). As the fraction value is 32, the price has a precision of 1/32 of a dollar. |
100.25,4 | =DOLLARDE(100.25,4) | Converts 100.25, read as 100 and 1/4, to a decimal number (100.625). As the fraction value is 4, the price has a precision of 1/4 of a dollar. |
1.6,3 | =DOLLARDE(1.6,3) | Converts 1.6, read as 1 and 2/3, to a decimal number. As the fraction value is 3, the price has a precision of 1/3 of a dollar. |
1.03,32 | =DOLLARDE(1.03,32) | Converts 1.03, read as 1 and 1/32, to a decimal number. As the fraction value is 32, the price has a precision of 1/32 of a dollar. |
We get the results below:
Click here to download the sample Excel file
Thanks for reading CFI’s guide to important Excel functions and how DOLLARDE can help with pricing US treasury bonds quotes, to the closest 1/32 of a dollar. By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional resources:
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