Measuring Interest Rates o The compounding frequency used for an interest rate is the unit of measurement The difference between quarterly and annual compounding is analogous to the difference between miles and kilometers Options, Futures, and other Derivatives 8th Edition Copyright o John C. Hull 2012 7Measuring Interest Rates The compounding frequency used for an interest rate is the unit of measurement The difference between quarterly and annual compounding is analogous to the difference between miles and kilometers Options, Futures, and Other Derivatives 8th Edition, Copyright © John C. Hull 2012 7