lifecontingencies (version 1.3.7)

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")

Arguments

i

The rate to be converted.

k

The original / target compounting frequency.

type

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

Value

A numeric value.

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

# NOT RUN {
#a nominal rate of 0.12 equates an APR of
nominal2Real(i=0.12, k = 12, "interest")
# }