DOLLARDE

The DOLLARDE function in Google Sheets converts a dollar price expressed as a fraction, such as a bond price quoted in a fractional format, into an equivalent decimal value. It's a staple for financial professionals working with bond and security pricing. Dive into our comprehensive guide to master its application.

Parameters

• fractional_price: The dollar price expressed as a decimal fraction, where the digits after the decimal point represent the fractional units.
• unit: The units of the fraction, such as 16 for sixteenths or 32 for thirty-seconds.

Step-by-Step Tutorial

1. Converting a fractional bond price to decimal:
   • Example: =DOLLARDE(1.02, 16)
   • Result: 1.125 (1 and 2/16 converted to decimal form)

Use Cases and Scenarios

1. Bond Pricing: Convert fractional bond price quotes into decimal prices for calculations.
2. Financial Reporting: Standardize fractional security prices before comparing them across instruments.
3. Investment Analysis: Prepare fractional price data for use in yield and return calculations.

Related Functions

• DOLLARFR: Converts a decimal price into a fractional dollar price.
• RATE: Calculates the interest rate of an annuity investment.

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