From ACT Wiki
A rate expressed on the basis which is conventional in the market in which the parties are dealing or proposing to deal.
For example, in relation to interest rates in wholesale markets:
- Short-term quoted rates are almost always nominal annual rates, either on a 360-day or 365-day basis
- Longer-term rates are usually effective annual rates
- Exceptions include the quotation of semi-annual rates in relation to many types of bond