2 month compounding

Month-based periods include 2-Month, Quarterly, 4-Month, Semiannual, and Annual. These all function in essentially the same way as monthly periods. The Periodic Rate is determined by dividing the Nominal Annual Rate by the number of periods in a year.

The periodic interest rate is used for each period, although actual period lengths vary slightly. For example, a quarter can range in actual length from 89 to 92 days, but the interest rate for a quarter is not affected by this difference if compounding is quarterly. Each quarter is treated as 1/4 of a year.