Day count convention, Financial Management

Assignment Help:

Day count convention is a system used to determine the number of days between two coupon dates. It is important in calculating accrued interest and present value when the next coupon payment is less than a full coupon period. Each bond market has its own daycount convention. In calculating the number of days between two dates, the actual number of days is not always the same as the number of days that should be used in the accrued interest formula. The number of days used depend on the day count conventions for the particular securities. Few of the day count conventions used in the bond market are: A 30/360 day count convention, where 30 days in a month and 360 days in a year are considered; actual / actual day-count convention, where actual number of days in a month and year are considered.


Related Discussions:- Day count convention

Stock price calculations, I need help working through this problem. What is...

I need help working through this problem. What is the stock price of Firm X when provided the following information? Beta – 1.42 MRP – 10% Rf – 3% G – 4% Dividend next period-

Explain the term stakeholders, Explain the term StakeHolders The range ...

Explain the term StakeHolders The range of stakeholders may comprise directors/managers, lenders, shareholders, employees suppliers and customers. These groups are probable to

Assignment, 1. If Robinson wishes to maximize its total market value, would...

1. If Robinson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. 2. Construct Robinson’s market va

Profit and loss statement, Profit and Loss statement:   The Profit and L...

Profit and Loss statement:   The Profit and Loss statement is the primary measure of business performance.  As the name suggests, this particular report measure whether the b

Miller-Orr model, Beta plc sets its minimum cash balance as $1,000.00 & eas...

Beta plc sets its minimum cash balance as $1,000.00 & eastimates the following transaction cost sale/purchase =$12 standrsa deviation =$1,200 per day Interest rate =14.6% p.a or 0

Day count convention, Day count convention is a system used to determ...

Day count convention is a system used to determine the number of days between two coupon dates. It is important in calculating accrued interest and present value

Compare and contrast the potential liability, Compare and contrast the pote...

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations. The sole proprietor has limitless liability for ma

Coefficient of determination, Coefficient of Determination As before, ...

Coefficient of Determination As before, Where, We can show that TSS = RSS + ESS We can also show that F = is an F distr

Calculate amount to fund the endowment, On Completion of her introductory f...

On Completion of her introductory finance course, Kieran was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were weal

What do you mean by sarbanes-oxley, Q. What do you mean by Sarbanes-Oxley? ...

Q. What do you mean by Sarbanes-Oxley? Sarbanes-Oxley (SOX) - Sarbanes-Oxley Act was signed into law on 30 July 2002 by President Bush. Act is designed to oversee the financial

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd