Day-Count Convention

(redirected from Actual 360)

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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Figure 1 is a sampling of behaviors from Howard's actual 360 feedback report followed by their impact.
11 /PRNewswire/ -- As perhaps the only company in the digital music space that sports an actual 360 degree e-commerce service, theBizmo now also offers artists a short cut to global digital distribution.
Is interest calculated on a 30/360 or an actual 360 basis?