Daily rate: Difference between revisions
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Revision as of 14:19, 23 October 2012
The daily rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per day.
For example, if the quoted daily rate is 5.11%, the amount of interest compounded daily is 5.11%/365 = 0.014%.
Not to be confused with the annual effective rate, which in this case would be 1.00014365 - 1 = 5.24%.
See also
