Calculating time factor of a cashflow

Posted by Piter Dias-4 on
URL: http://quantlib.414.s1.nabble.com/calculating-time-factor-of-a-cashflow-tp7739p7743.html

Khanh

> Thank you for your answer. Could you elaborate a little more? I can't
> establish a "connection" between yearFraction() with the Matlab's
> description of TimeFactor.


Please take a look at the PV formula where TFactor is explained. The
denominator in that formula looks like the code below, from
interestrate.cpp:

          case Compounded:
            return std::pow(1.0+r_/freq_, freq_*t);

Comparing the two formulas you can see that TFactor = freq_*t, where t =
yearFraction.

You can check the compoundFactor methods of InterestRate class in order to
understand how yearFraction (method of DayCounter class) is used.

Regards,

-------------------------

Piter Dias
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