Day count convention

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Day count convention

A convention for determining the number of days between two dates and the number of days in a year, which are used for calculating interest accrued on bonds and other interest rate dependent securities. Also see actual/actual, actual/360, 30/360.

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.
References in periodicals archive ?
The Arkansas Department of Finance & Administration, as authorized by Act 360 Of 2009, can close any business that fails to remit withholding taxes for any three months during a 24-month period, and lists those businesses served with closure notices.
Act 360 of 2009 allows the department to close any business that fails to remit withholding taxes for any three months during a 24-month period.
Act 360 allows the revenuers at the Arkansas Department of Finance & Administration to close any business that fails to remit withholding taxes for any three months during a 24-month period.