Actual/360
A convention that counts actual days in the period divided by 360, commonly used in financial markets for interest calculations.
Money-market yield, day-count, banker-year, and annuity-rate terms used in banking rate conventions.
Money market, day-count, and annuity rates are rate conventions that depend on how days, periods, and payment streams are counted.
Use this branch when a banking or money-market quote uses a calendar convention, a 360-day year, a bill-style yield, or an annuity-style rate rather than a simple deposit APY.
| Term | What it clarifies |
|---|---|
| Actual/360 | Interest calculation using actual elapsed days over a 360-day denominator. |
| Banker’s Year | A 360-day convention used in some interest calculations. |
| Money Market Yield | A quoted yield convention for short-term money-market instruments. |
| Annuity Rate | A rate used to translate between periodic payments and present or future value. |
Day-count and money-market conventions can change the dollar interest accrued over the same calendar period. A rate may look lower or higher simply because it is quoted on a different basis.
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A convention that counts actual days in the period divided by 360, commonly used in financial markets for interest calculations.
An annuity rate converts a lump sum or present value into a stream of periodic payments.
The Banker's Year is a financial convention that standardizes the length of a month at 30 days and a year at 360 days.
Money market yield is a quoted return measure for short-term instruments that helps compare cash-like investments.