FinancialMath (version 0.1.1)

rate.conv: Interest, Discount, and Force of Interest Converter

Description

Converts given rate to desired nominal interest, discount, and force of interest rates.

Usage

rate.conv(rate, conv=1, type="interest", nom=1)

Arguments

rate

current rate

conv

how many times per year the current rate is convertible

type

current rate as one of "interest", "discount" or "force"

nom

desired number of times the calculated rates will be convertible

Value

The row named 'eff' is used for the effective rates, and the nominal rates are in a row named 'nom(x)' where the rate is convertible x times per year.

Details

$1+i=(1+\frac{i^{(n)}}{n})^n=(1-d)^{-1}=(1-\frac{d^{(m)}}{m})^{-m}=e^\delta$

Examples

rate.conv(rate=.05,conv=2,nom=4,type="discount")

rate.conv(rate=.05,conv=2,nom=4,type="force")