- Day-Count Convention
- A system used to determine the number of days between two coupon dates, which is important in calculating accrued interest and present value when the next coupon payment is less than a full coupon period away. Each bond market has its own day-count convention.
There are several different types of day-count conventions. For example, a 30/360 day-count convention assumes there are 30 days in a month and 360 days in a year. An actual/actual day-count convention uses the actual number of days in the month and year for a given interest period.
This concept might sound illogical. After all, regardless of the particular bond market there will always be 365 days in a year! Nevertheless, these conventions are standards that have developed over time and help to ensure that everybody is on an even playing field when a bond is sold between coupon dates.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Day count convention — In finance, a day count convention determines how interest accrues over time for a variety of investments, including bonds, notes, loans, mortgages, medium term notes, swaps, and forward rate agreements (FRAs). This determines the amount… … Wikipedia
day count convention — noun A convention on how interest accrues over time for a variety of investments, including bonds, notes, loans, medium term notes, swaps, and FRAs … Wiktionary
day count basis — See accrual convention … Financial and business terms
Count Arthur Strong's Radio Show! — The front cover of the second series CD release, with Steve Delaney dressed as Count Arthur Strong. Genre Sitcom Running time 30 minutes … Wikipedia
Convention Girl — Directed by Luther Reed Produced by David M. Thomas Written by Peggy Goodin (Novel) Muriel Roy Bolton (Screenplay) Agnes Christine Johnston (Screenplay) Starring … Wikipedia
Day of the Tiles — La Journée des tuiles en 1788 à Grenoble, 1890 painting by Alexandre Debelle. The Day of the Tiles (French: Journée des Tuiles) is an event that took place in the French town of Grenoble on 7 June 1788. It was among the first of the revolts which … Wikipedia
Day — For other uses, see Day (disambiguation). Water, Rabbit, and Deer: three of the 20 day symbols in the Aztec calendar, from the Aztec calendar stone. A day is a unit of time, commonly defined as an interval equal to 24 hours … Wikipedia
Count Johann Hartwig Ernst von Bernstorff — Johan Hartvig Ernst Bernstorff Count Johann Hartwig Ernst von Bernstorff (May 13, 1712 – February 18, 1772), Danish statesman, who came of a very ancient Mecklenburg family, was the son of Joachim Engelke von Bernstorff, Chamberlain to the… … Wikipedia
Count Geoffrey Potocki de Montalk — Count Geoffrey Wladislas Vaile Potocki de Montalk (1903–1997), poet, private printer, pamphleteer, pagan and pretender to the Polish throne, was born in New Zealand, the eldest son of Auckland architect Robert Wladislas de Montalk, grandson of… … Wikipedia
United States presidential nominating convention — A United States presidential nominating convention is a political convention held every four years in the United States by most of the political parties who will be fielding nominees in the upcoming U.S. presidential election. The formal purpose… … Wikipedia