Day count convention for calculating interest accrued on U.S. Treasury bonds. Uses actual number of days in a month and actual number of days in a year for calculating interest payments. Also see Day count convention.
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Interest that is calculated and therefore repaid on the basis of a 365-day year (that is, an actual year), as opposed to a 360-day year, which is used in some calculations. While this is only a small difference in calculation, the difference in amount can be large, especially with large debt transactions. See also: Ordinary interest.
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