ACT/365 fixed: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Generalise to cover discounts as well as interest.)
imported>Doug Williamson
(Classify page.)
 
(2 intermediate revisions by the same user not shown)
Line 13: Line 13:


== See also ==
== See also ==
* [[CertFMM]]
* [[Interest]]
* [[ACT/360]]
* [[ACT/360]]
* [[ACT/365]]
* [[ACT/365]]
* [[Convention]]
* [[Conventional year]]
* [[Day count conventions]]
* [[Day count conventions]]
* [[Conventional year]]
* [[Effective annual rate]]
* [[Interest]]
* [[Money market]]
* [[Money market]]
* [[Nominal annual rate]]
* [[Nominal annual rate]]
* [[Effective annual rate]]
* [[Periodic rate]]
* [[Periodic rate]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 12:30, 16 December 2021

A day count convention which calculates actual days in a time period, over a 365-day conventional year, regardless of the number of days in the year.

In other words, the fraction used for interest calculations is always:

Actual days / 365


This applies in leap years as well as normal years.


ACT/365 fixed is the convention most often used in the short term GBP market.


See also