ACT/365 fixed: Difference between revisions
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imported>Doug Williamson (Generalise to cover discounts as well as interest.) |
imported>Doug Williamson (Removed link) |
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== See also == | == See also == | ||
* [[Interest]] | * [[Interest]] | ||
* [[ACT/360]] | * [[ACT/360]] | ||
Revision as of 14:31, 16 November 2016
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.
