Interest period

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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