lifecontingencies (version 1.3.12)

nominal2Real: Functions to switch from nominal / effective / convertible rates

Description

Functions to switch from nominal / effective / convertible rates

Usage

nominal2Real(i, k = 1, type = "interest")
convertible2Effective(i, k = 1, type = "interest")
real2Nominal(i, k = 1, type = "interest")
effective2Convertible(i, k = 1, type = "interest")

Value

A numeric value.

Arguments

i

The rate to be converted.

k

The original / target compounting frequency.

type

Either "interest" (default) or "nominal".

Details

effective2Convertible and convertible2Effective wrap the other two functions.

References

Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition), 2008, ACTEX Publications.

See Also

real2Nominal

Examples

#a nominal rate of 0.12 equates an APR of
nominal2Real(i=0.12, k = 12, "interest")