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Amwelladmin (talk | contribs) (Created page with "a {{tag|day count fraction}} which basically divides the interest payable in a year into 12 equal sums.") |
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a {{tag|day count fraction}} which basically divides the interest payable in a year into 12 equal sums. | [[30/360]] is a {{tag|day count fraction}} - the oldest, most simple-minded and yet elegantly pragmatic of all [[day count fraction]]s — which basically divides the interest payable in a year into 12 equal sums. Magically effective, even though no actual month of the year has 30 days, and no year has 360 days. | ||
You might well ask why we don't call it [[1/12]], and indeed that is one of those many excellent questions to which the financial markets, mighty as they are, can supply no good answer. | |||
{{daycountfractions}} | |||