Which of the following day count conventions applies to a US Treasury bond?
A. Actual/360
B. Actual/Actual (in period)
C. 30/360
D. Actual/365
B
Actual/Actual (in period) is used for US Treasury bonds. This means that the interest earned during a period that lies between two coupon payment dates is calculated by dividing the actual number of days in the period by the number of days between the coupon payments and multiplying the result by the next coupon payment
You might also like to view...
Internal and external data should be collected for a marketing information system
A) periodically. B) continually. C) when needed. D) infrequently. E) at the end of each month.
Brenda bought an automatic vegetable chopper from a local retail store. After a month of use, the vegetable chopper stopped working. She sent an email to the customer service department of the store describing the details of the problem. The store sent a technician to Brenda's house the next day to address the issue. The technician realized that the repair tool that he brought with him was not
compatible with the vegetable chopper. On examining the appliance, the technician discovered that the model number of the vegetable chopper was different from what was stated in the complaint email sent by Brenda. In this scenario, it is likely that: A) the information provided by Brenda was untimely. B) the information provided by Brenda was irrelevant. C) the information provided by Brenda was inaccurate. D) the information provided by Brenda was incomplete.