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

Un number, 1. UN Number is a four digit number assigned to a potentially ha...

1. UN Number is a four digit number assigned to a potentially hazardous material (such as gasoline) or class of materials like corrosive liquids. 2. UN Numbers are assigned by U

Define the term shareholders, Shareholders Shareholders are usually ass...

Shareholders Shareholders are usually assumed to be interested in wealth maximisation. This though involves consideration of potential return and risk. Where a company is liste

Explain do mergers result in layoffs, Do mergers result in layoffs? Whole...

Do mergers result in layoffs? Whole employment in the banking industry in fact has increased slightly over the last ten years. A few mergers do result in layoffs. Though, many ba

Under armour finance, I need a paper on the financial status of the company...

I need a paper on the financial status of the company under armour with ratios using information from yahoo.com finances. & Id like to provide a document with further details

Bond with call and prepay options, Let us consider a bond with ...

Let us consider a bond with callable or prepayable feature. Figure shows the price/yield relationship of option-free bond and callable bond. The price yield

Demand at each particular exchange rate, The usual number of passengers usi...

The usual number of passengers using the service is dependent upon the demand at each particular exchange rate. At 1·52 Euro/£ expected demand = (0·33·)(500 + 460 + 420) = 460

Define intermediation, Define intermediation The financial system makes...

Define intermediation The financial system makes it probable for surplus and deficit economic units to come together, exchanging funds for securities, to their mutual advantage

Explain the cash flow of the volatility, 1. Let's look at the cash flow of ...

1. Let's look at the cash flow of the volatility (variance) spread swap: - ( σ 2 Nasdaq - σ 2 S & P 500 ) N 2 It is noticeable from this expression that investor

Symmetric cash matching, We have earlier studied that the investor ma...

We have earlier studied that the investor may have to carry cash for some time because of discrepancies arising between the timing of the bond's cash-flow and the

Factors of importance of returns in any investment, Factors of Importance o...

Factors of Importance of returns in any investment Importance of returns in any investment decision can be traced to the following factors: It enables investors to

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