## Simple Then Compounded

Subtype of CompoundingThis is equivalent to

**for accrual periods less or equal than the compounding period corresponding to the given frequency, but equivalent to**

*Simple***for accrual periods greater than that.**

*Compounded*Formally, the interest amount

**earned during any time period with length**

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

*t***if t is less or equal than 1/f and**

*I = Nrt***if t is greater than 1/f.**

*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**