lifecontingencies (version 1.3.1)

effective2Convertible: Function to switch from nominal / effective / convertible rates

Description

This function provides convenience functions to switch from effective to convertible rate.

Usage

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

Warning

The function is provided at is without any guarantee of results.

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")
# }