Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Aug 19, 2014, 8:34:54 PM
r2=⎡⎣(1+r1n1)n1n2−1⎤⎦n2
n1Base frequency |
n2Final Frequency |
r1Base interest |
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UUID | a1e2289d-f928-11e2-968f-bc764e049c3d |
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This formula is used to convert an interest rate from one compounding basis to another compounding basis. The inputs are:
- r1 which is the base interest rate
- n1 is the base compounding frequency (e.g. 1 for year)
- n2 is the final compounding frequency (e.g. 12 for monthly)
This equation, Compounding Basis, references 0 pages
This equation, Compounding Basis, is used in 7 pages