how I can calculate EAR with continuous compounding?

J

Jarek Kujawa

what do you mean by "EAR"?
Earnings at risk?
could you be more specific?
also provide a sample of your data
 
J

Joe User

salman said:
Subject: how I can calculate EAR with continuous compounding?
Click to expand...

Assuming you mean effective annual rate, the Excel formula is:

=EXP(A1)-1

where A1 contains that nominal annual rate, e.g. 1% or 0.01.
 

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