Modern Finance Compounding

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Compounding

Lists how often interest compounds, as periods per year, plus simple and continuous.

Syntax

COMPOUND_ANNUAL  COMPOUND_SEMIANNUAL  COMPOUND_MONTHLY  COMPOUND_CONTINUOUS  COMPOUND_SIMPLE  ...

Examples

#import "std/money"
using money

'' THE VALUES ARE PERIODS PER YEAR, so converting a rate is a division
'' rather than a lookup table.
print COMPOUND_MONTHLY                   '' 12
print COMPOUND_SEMIANNUAL                '' 2

'' Two members are NOT frequencies, and every function branches on them
'' explicitly rather than dividing by zero.
print COMPOUND_SIMPLE                    '' 0
print COMPOUND_CONTINUOUS                '' -1

'' Compounding is what makes a Canadian mortgage differ from a US one on
'' the same quoted rate -- see RatePerPaymentFromNominal.
dim as Decimal j = DecimalParse( "0.0595" ).Value( )
print RateEffectiveFromNominal( j, COMPOUND_SEMIANNUAL ).Value( ).ToString( )

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Library: Finance
Category: Finance
Documented under: Nothing Becomes A Keyword
Source: pkg/std/money/fincore.tiko in the tiko repository.