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Simple Compounding

The simply compounded spot interest rate, denoted as L(t,T), is the rate prevailing at time t for the maturity T.

It is the constant rate at which an investment P(t,T) at time t accrues to yield a unit amount of curency at maturity T

The market LIBOR rates are simply-compunded rates, which is the motivation behind the notation L(t,T). This rates is given as
The zero coupon bond price expressed in terms of L is