Here is the question about round and guard digits in IEEE-754 floating point number representation. According to the standard, two additional digits are reserved for calculations. Assume two digits after the point are available and
2.3400
+ 0.0256
--------
2.3656
Now, guard is 5 and round is 6 and since 56>50, then it is rounded to 100, therefore, the result is 2.37
However, if you don't assume the guard and round digits and only assume the additional digit is between 5 and 9, then you will round it again to 10 and the result is 2.37
So, my question is, in which situation the traditional rounding mechanism (0 to 4 are rounded to 0 and 5 to 9 are rounded to 10) fail while guard and round digits are helpful?