Interest period

The period between interest payments on an interest-bearing a financial instrument. Common ones: annual and semi annual (especially for fixed rate products, since QED the interest rate doesn’t periodically change so there’s no particular market risk consequence for paying interest more frequently, and operationally it is a hassle); quarterly, monthly, weekly and daily (floating rate products, which are path-dependent and more susceptible to intra-period volatility).

Also described (especially by ISDA types) as a “calculation period”, although that is of course a more general term which can refer to other, non-interest-related determinations.

See also

• Day count fraction
• Calculation period
• Business day convention