% Generated by roxygen2: do not edit by hand
% Please edit documentation in R/chapter15_variable_interest.R
\name{z_from_fn1}
\alias{z_from_fn1}
\title{Spot rates from forward one-year rates}
\usage{
z_from_fn1(fn1)
}
\arguments{
\item{fn1}{Numeric vector of annual effective forward one-year rates.}
}
\value{
Numeric vector of annual effective spot rates.
}
\description{
Converts annual effective forward one-year rates
\eqn{f_{0,1}, f_{1,1}, \dots, f_{n-1,1}}
into annual effective spot rates
\eqn{z_1, z_2, \dots, z_n}.
}
\details{
Since
\deqn{
(1+z_n)^n = \prod_{j=0}^{n-1}(1+f_{j,1}),
}
the spot rates are recovered directly.
}
\examples{
z_from_fn1(c(0.04, 0.05, 0.06, 0.07, 0.08))

}
