qfinbox.tvm.basic.nominal_rate

qfinbox.tvm.basic.nominal_rate(effective_rate: float, compounding_frequency: int) → float[source]

Calculate nominal rate from effective annual rate.

Parameters:

  • effective_rate (float) – Effective annual interest rate (as decimal).

  • compounding_frequency (int) – Number of compounding periods per year.

Returns:

Nominal annual rate.

Return type:

float

Examples

>>> nominal_rate(0.1268, 12)  # Effective 12.68% compounded monthly
0.12