Indicates the manner in which the days in both the month and the year
are to be counted for interest payments and accruals, as well as yield-to-maturity
calculations. There are four basic types of day count basis used
and generally the security type is the determining factor. The convention
for indicating day count basis is days in the month/days in the year.
| Actual/Actual |
--- |
assumes the year has either 365 or 366 (leap year)
days |
| 30/360 |
--- |
assumes all months have 30 days and the year has 360
(12x30) |
| Actual/360 |
--- |
assumes the year has 360 days |
| Actual/365 |
--- |
assumes the year has 365 days |
|