## Compounded

Subtype of CompoundingThe earned interest amount should be capitalized over time according to a mathematical formula described below.

Formally, the interest amount

**earned during any time period with length**

*I***is given by the formula**

*t*

*I = N(1+r/f)ᶠᵗ - N*where:

**is the notional at the begining of the accrual period**

*N***is the applicable fixed rate**

*r***is the length of the accrual period in number of years according to some given DayCount convention.**

*t***is the compounding frequency of the applicable fixed rate, e.g. 2 if semiannual.**

*f*Note, this setting is not compatible with the frequencies

**Once**or

**None**