The `DOLLARDE` function in Excel is used to convert a dollar price expressed as a fraction into a decimal. This can be particularly useful in financial analysis when dealing with securities that are quoted in fractional dollar terms.
Here’s how to use the `DOLLARDE` function:
Syntax
DOLLARDE(fractional_dollar, fraction)
- fractional_dollar: This is the dollar price expressed as a fraction. It consists of an integer part and a fractional part separated by a decimal point or period.
- fraction: This is the denominator used in the fractional part of the dollar price. It must be an integer.
Example Usage
Example 1
Suppose you have a dollar price quoted as $5.75, where the fractional part (75) is out of 16 (i.e., it represents 75/16). To convert this to a decimal dollar price, you would use:
=DOLLARDE(5.75, 16)
This formula will return a decimal representation of the dollar price.
Example 2
If an amount is expressed as $10.125 and the fractional part (125) is out of a base of 8 (representative of eighths, common in trading of some financial instruments), then the formula would be:
=DOLLARDE(10.125, 8)
Important Notes
- Ensure that the fractional_dollar includes both the integer and fractional parts. They should be separated by a decimal point.
- The fraction must be a positive integer and representative of the base of the fractional part you are dealing with.
- This function is mostly used in finance to deal with prices of bonds or other securities traditionally quoted in fractional terms.
By properly setting these parameters, `DOLLARDE` can efficiently convert any fractional dollar prices into decimals, streamlining financial calculations and analyses in spreadsheets.
Unlock Your Potential
Excel
Access
Power BI
