The DOLLARFR function in Excel serves a specific purpose for those dealing with financial data, particularly in the realm of bond pricing and investments. This function allows users to convert decimal representations of dollar prices into fractions, facilitating clearer financial reporting and analysis.

Syntax

DOLLARFR(decimal_dollar, fraction)

• decimal_dollar: The dollar amount in decimal format that you wish to convert to a fraction.
• fraction: The denominator to which the decimal value will be converted. Commonly used values are 1, 2, 4, 8, 16, or 32.

Example #1

=DOLLARFR(1.5, 8)

This function converts 1.5 dollars into a fraction with a denominator of 8, resulting in $1 4/8 or $1.50.

Example #2

=DOLLARFR(2.25, 16)

The function transforms 2.25 dollars into a fraction with a denominator of 16, resulting in $2 4/16 or $2.25.

Example #3

=DOLLARFR(3.875, 32)

This function converts 3.875 dollars into a fraction with a denominator of 32, yielding $3 28/32 or $3.875.

Error handling

• NUM! Indicates that either the decimal value or the fraction is invalid. For example, using a fraction that is not a standard denominator can trigger this error.
• VALUE! Occurs when the input values are not numeric. This can happen if you accidentally input text instead of numbers.
• DIV/0! Happens when the fraction argument is specified as zero. Since division by zero is undefined, this error will arise.

Conclusion

In summary, the DOLLARFR function is a valuable tool for finance professionals working with bond prices or other fractional dollar amounts. By converting decimal values into fractional representations, users can enhance their financial calculations and reporting accuracy. Understanding this function and its parameters can greatly improve efficiency in Excel spreadsheet activities.