6: Interest Rate Conversions 85
The ICNV Menu
FIN
TVM
NOM% NOM%
PER
BUS
ICNV
EFF% EFF%
CONT
SUM
CFLO
P
TIME
BOND
SOLVE
DEPRC
CURRX
The ICNV menu converts between nominal and effective interest rates,
using either:
! Periodic compounding; for example, quarterly, monthly, or daily
compounding.
! Continuous compounding.
Converting Interest Rates
To convert between a nominal annual interest rate and an effective
annual interest rate that is compounded
periodically
:
1.
Press
"
h
to display the interest conversions menu.
2. Press i
for periodic.
3. Key in the number of compounding periods per year and press
1
.
4. To convert to the effective rate, first key in the nominal rate and press
j
,
then press
k
.
5. To convert to the nominal rate, first key in the effective rate and press
k
,
then press
j
.
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