<t>For one thing, if I work in Act/Act and a leap day close to maturity say, then the day count quotient is 366 in all forward and discount calculations in Method 1 while for Method 2 it is 365 for all discounts except for the final settlement.I checked an example where the effective interest differ...

Yes, I do.

<t>Daveangel, thanks for seeing me!You are right that is the same thing! I am just wondering which method is to prefer and what is standard among the banks. In our system we use Method 1 today, but I think method 2 is more straight forward - but then again, I don't know if there is a convention on t...

No comment? Nothing?

<t>I have two different methods to calculate an effective interest that reflects a bond price. The methods are very similar indeed and the differences are only visible when looking into details such as method of day count conventions.My problem is that I should choose ONE method to implement in a fi...

QuoteOriginally posted by: outrunyou can get a lowerbound for the Elephant by submerging it in a large tank filled with donkey milk (good for its skin), and measure the amount of spilled milk.You miss the hard part! How would you put the elephant in the tank?

<t>QuoteOriginally posted by: HansiQuoteOriginally posted by: slopsEDIT: But it is incomplete. E.g. 30A/360 is missing...What do you mean 30A/360? Don't you just mean Act/360 which is there?I had to look it up - 30A/360 is sometimes used for 30/360 bond basis (as explained in the ISDA xls file of pr...

The ISDA xls doc is a great doc (seen it before). Such doc's for other day count conventions would be great to have (given by a bank or something similar..)

I'll get back on this one...

That might be, I really like wikipedia and I contribute in different topics whenever I feel a need, but if a client asks regards a convention then I hesitates...

QuoteOriginally posted by: MHillI'm guessing you've already looked at wikipediaSure, however I actually do not think Wikipedia is very trustworthy since anyone can edit (and yes the pages might be reviewed).

<r>QuoteOriginally posted by: HansiHere is a link to aggregate info with links to the ISDA defs etc:<URL url="http://www.eclipsesoftware.biz/DayCountConventions.htmlThat"><LINK_TEXT text="http://www.eclipsesoftware.biz/DayCount ... s.htmlThat">http://www.eclipsesoftware.biz/DayCountConventions.htmlT...

QuoteOriginally posted by: VegawizardIt is the page code on a Bloomberg terminal - do you have access to a Bloomberg terminal?Thanks, no I don't

QuoteOriginally posted by: HansiIIRC the CFA Lvl 1 books have a decent list of it. Might wanna borrow those from someone at the company who's done it.Do you mean some book at https://www.cfainstitute.org/Pages/index.aspx ?

<t>QuoteOriginally posted by: VegawizardBloomberg will list daycount convention per instrument - start with page BTMM and select country top leftRule of thumb:Sovereign / Govt bonds are Act / ActUK £ money market and most 'old commonwealth' territories Act / 365US $ & Eur money market Act / 360U...