Simple Then CompoundedSubtype of
This is equivalent to Simple for accrual periods less or equal than the compounding period corresponding to the given frequency, but equivalent to Compounded for accrual periods greater than that.
Formally, the interest amount I earned during any time period with length t is given by the formula I = Nrt if t is less or equal than 1/f and I = N(1+r/f)ᶠᵗ - N if t is greater than 1/f.
N is the notional at the begining of the accrual period
r is the applicable fixed rate
t is the length of the accrual period in number of years according to some given DayCount convention.
f is the compounding frequency of the applicable fixed rate, e.g. 2 if semiannual.
Note, this setting is not compatible with the frequencies Once or None