Interest rate compounding terminology

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Interest rate compounding terminology

John McMahon-2
enum Compounding { Simple = 0, //!< \f$ 1+rt \f$

Compounded = 1, //!< \f$ (1+r)^t \f$

Continuous = 2, //!< \f$ e^{rt} \f$

SimpleThenCompounded //!< Simple up to the first period then Compounded

};

(1) Would 'Discrete' be a better enum choice instead of 'Compounded', given
that 'Continuous' is also compounded?  And 'Simple' could also be 'None'?

(2) Also, what is the use case which prevents you from having a single
discrete compounding case rather than 'SimpleThenCompounded' and
'Compounded'? The code in 'InterestRate::compoundFactor()case
SimpleThenCompounded' seems like it covers thecases I can think of, both
when the first payment is and is not before '1/compoundingFreq' of a year.

thanks,

John McMahon






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