ACT/365 fixed

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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.

See also