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Actual/360

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Actual/360
Day count convention for calculating interest accrued on U.S. Treasury bills and other money market instruments. Uses actual number of days in a month and 360 days in a year for calculating interest payments. Also see Day count convention.

Day-Count Convention
An assumption used to calculate the frequency of coupon payments for a bond. This is used to calculate accrued interest and may therefore be important to the valuation of a bond, especially just before or just after the coupon date. There are two main day-count conventions. The 30/360 convention assumes that there are 30 days each month and 360 days in a year. On the other hand, the actual/actual convention uses the real number of days each month and year.


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5 years of yield maintenance, with a full-term interest-only amortization schedule payable on an actual/360 basis.
Unlike the earlier issues which calculate interest on a 30/360 day basis, 1992-1 uses actual/360.
The LOCs provide full coverage of principal plus an amount equal to 40 days' interest at a maximum rate of 10% based on a 365/366-day year for series 2005A bonds and 12% computed on an actual/360 basis for the taxable series 2005B bonds.
 
 
 
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