Interest period

From ACT Wiki
Revision as of 19:47, 7 March 2022 by imported>Doug Williamson (Layout.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

Interest - calculation.

A period of time for which an amount of interest payable or receivable is calculated and becomes payable or receivable.

For example, a day, a week or a month.


Contrasted with the reference period, which is the period in relation to which the rate is quoted.


Interest - counting days - conventions
"The day count convention determines how interest accrues over time in a variety of transactions...
In wholesale markets, interest is usually expressed to accrue at a rate per annum (the reference period).
It is often due and payable at shorter intervals, usually a number of months (the interest period)."
Day count conventions - the Treasurer's wiki.


See also