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compounding period

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Compounding period
The length of the time period that elapses before interest compounds (a quarter in the case of quarterly compounding).
compounding period
The period between the points when interest is paid or when it is added to principal. For example, a quarterly compounding period indicates interest is paid or is calculated at three-month intervals.
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The safe harbor interest rate is 150% of the highest AFR, at the appropriate compounding period in effect at any time beginning when the right to the guaranteed payment for capital is first established through the end of the tax year.
Structuring guaranteed payments to avoid disguised sale treatment by Ellentuck, Albert B. / The Tax Adviser
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