ODFF: RECEIVED function (2)

ODFF 28Jun08:

"TODO: I do not know if the above formula applies to the 
condition that the maturity date is more than one year after the 
settlement date."

http://en.wikipedia.org/wiki/Bond_valuation seems to suggest that 
compounding is important in valuing a discounted bond, as you 
would expect. The formula employed in the function takes no 
account of compounding of course, so I submit it would be unwise 
to suggest its use for periods over a year. It may have been 
intended for some short term US Treasury bills?

The formula is fine if you use an equivalent uncompounded rate, 
but I suspect that doesn't happen in practice.

Caveat: this is not my field of expertise.

D