ACT/365 fixed: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson ('in' removed) |
imported>Doug Williamson (Link with Nominal annual rate page.) |
||
| Line 20: | Line 20: | ||
* [[Conventional year]] | * [[Conventional year]] | ||
* [[Money market]] | * [[Money market]] | ||
* [[Nominal annual rate]] | |||
Revision as of 15:15, 28 November 2015
A day count convention which calculates actual days 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.
