ACT/365 fixed: Difference between revisions
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imported>Doug Williamson (Link with Nominal annual rate page.) |
imported>Doug Williamson (Link with Effective annual rate page.) |
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* [[Money market]] | * [[Money market]] | ||
* [[Nominal annual rate]] | * [[Nominal annual rate]] | ||
* [[Effective annual rate]] | |||
Revision as of 15:16, 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.
