When you listen to a financial report, you might hear a price such as 1 and five sixteenths or 1.3125. Those two statements actually represent the same value…the trick is to convert between decimal notation and fractional notation. In Excel, you can do that by using the DOLLARDE and DOLLARFR functions.
- [Voiceover] When you listen to a financial report,…you might hear security prices, such as 1 5/16,…or alternatively, 1.3125.…These two statements actually represent the same value.…The trick is to convert between decimal notation,…and fractional notation.…In Excel, you can do that by using…the dollarDE, and dollarFR functions.…I will demonstrate how to do those conversions.…My sample file is the Convert_05_01 workbook.…
You can find it in the chapter 5 folder…of the exercise files collection.…Once again, we are converting between fractional dollars,…and decimal values, and vice versa.…In the top part of this worksheet,…I have a fractional dollar value.…It's written as 1.05, but there is a fraction of 16.…In this case, I have fractional dollar value of 1 5/16.…You read the decimal part of the number,…in this case, in cell C-4, and then say…one and five over the fraction that's in C-5,…and that 16ths.…
If you want to convert this value to a decimal value,…then you click in cell C6, type an equal sign,…and use the function dollarDE.…
- Define NPER.
- Determine the appropriate method of depreciation to use on tax returns.
- Recall which function is used to evaluate a fixed-rate investment or an annuity that makes periodic payments to the beneficiary.
- Identify the term for the rate of return earned from a zero-risk investment.
- Explain the purpose of the XNPV function.
- Recognize the type of bond that pays interest before it matures.
- Name three arguments needed to use the TBILLYIELD function.
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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