equiv.rate {jrvFinance}

Equivalent Rates under different Compounding Conventions

Description

Converts an interest rate from one compounding convention to another (for example from semi-annual to monthly compounding or from annual to continuous compounding)

Usage

equiv.rate(rate, from.freq = 1, to.freq = 1)

Arguments

rate

The interest rate in decimal (0.10 or 10e-2 for 10%)

from.freq

Frequency of compounding of the given interest rate: 1 for annual, 2 for semi-annual, 12 for monthly, Inf for continuous compounding.

to.freq

Frequency of compounding to which the given interest rate is to be converted: 1 for annual, 2 for semi-annual, 12 for monthly, Inf for continuous compounding.