New answers tagged interest
My personal preference is to use OIS rate for recent years, and LIBOR when OIS isn't available. If neither is available, CB target rate can also be used.
I believe in the literature they use either the T-bill rate or short term bank deposit rate.
Your answer is correct. The point is you need to match the interest rate periods with the compounding periods. So if (R/N) is the rate for a 1-month period, then "NT" must be the number of compounding months. Since you are compounding for 10.5 years, this represents 126 months (10.5 * 12). If, on the other hand, your compounding is semiannual (as is usual ...
If your compound period is monthly, then what you have is correct.
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