$\displaystyle e^{R(t,S,T)(T-S)}=\frac{B(t,S)}{B(t,T)}$
Is R(t,S,T) a constant discount rate or just a discount rate.
And why ?
Thanks
Note that 'r in that equation is a constant. If the OP is asking about compounding where the rate varies over time this formula doesn't apply.
Also a nit to pick, to avoid any confusion - the 'r 'is not a percent, but rather a rate expressed as a decimal. Thus if the interest rate is 10% /year then 'r' would be 0.1 in the formula.
Good point...however, I'm fairly sure the OP will "get the point"; if not:
$2340 @ 3.1% cpd. continuously for 3 years:
2340[2.7183....^(.031 * 3)] = ~2568.06
Try same with daily cpd. instead: you'll get 2568.04; so don't get taken in
by the SOUNDS of cpd. continuously !