ACT/ACT: Difference between revisions
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imported>Doug Williamson (Make ACT/ACT express in second part.) |
imported>Doug Williamson (Note 'days in an interest period' expressly.) |
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A day count convention which calculates actual days over the actual number of days in a year. | A day count convention which calculates actual days in an interest period, over the actual number of days in a year. | ||
In a normal year, this will be 365 days. | In a normal year, this will be 365 days. | ||
Revision as of 13:02, 14 December 2015
A day count convention which calculates actual days in an interest period, over the actual number of days in a year.
In a normal year, this will be 365 days.
In a leap year it is 366 days.
The ACT/ACT convention is also sometimes known as ACT/365, because the denominator is usually 365.
Contrasted with ACT/365 fixed, where the denominator is always 365, including in a leap year.
