Interest
Rate
Conversions
Th
e ICONV (interest conversion)
menu
converts
between
nominal
and
effective interest rates, using either
of
two
compounding
methods
:
• Periodic
compounding;
for example, quarterly, monthly,
or
daily
compounding
.
•
Continuous
compounding.
To
convert
between
nominal
and
effective interest rates,
starting
from
the
MAIN
menu
:
1.
Press
""
then
..
to
display
the
ICONV
menu
.
2.
Press
the
menu
key for
the
desired
compounding
method
(do a
or b):
a. Press
IIIBI
for periodic
compounding
.
b. Press
BIll
for
continuous
compounding.
3.
Key in
the
nominal
(or effective)
interest
rate
and
press
1mB
(or
IDD
).
4.
For periodic
compounding
only: Key
in
the
number
of
periods
per
year
and
press
..
.
5.
Press
IDD
(or
1mB
) to calculate
the
effective (or nominal)
interest rate.
Values
of
EFF%
and
NOM%
are
shared
between
t
he
EFFCT
and
CO
NT
menus
. For example, if you calculate
an
effective interest rate in
CONT, t
hat
value
rema
i
ns
stored in EFF% if
you
exit
the
CO
NT
menu
and
enter
the
EFFCT
menu.
4:
Time
Value
of
Money
77
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