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Template:Business day conventions: Difference between revisions
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There are two things you might wish to adjust here: one is '''settlement date for the interest ''payment''''' — that is, ''the day on which the interest payment is actually made'', the other is the '''duration of the [[interest period|interest ''period'']]''' — that is ''the day on which the [[interest period]] in question is [[deemed]] to end<ref>Which, to state the bleeding obvious, is also the date by reference to which the next period starts.</ref>''. | There are two things you might wish to adjust here: one is '''settlement date for the interest ''payment''''' — that is, ''the day on which the interest payment is actually made'', the other is the '''duration of the [[interest period|interest ''period'']]''' — that is ''the day on which the [[interest period]] in question is [[deemed]] to end<ref>Which, to state the bleeding obvious, is also the date by reference to which the next period starts.</ref>''. | ||
Unlike [[day count fraction]]s, business day conventions are not tied to specific currencies or anything like that: it comes down to the basic preference of the institution calculating the [[interest rate]]. | Unlike [[day count fraction]]s, [[business day convention|business day conventions]] are not applied in a standardised way across the industry: they are not tied to specific currencies or anything like that: it comes down to the basic preference of the institution calculating the [[interest rate]]. | ||
That said, [[fixed rate]] products are a lot less bother than [[floating rate]] products, and tend to be unadjusted. | That said, [[fixed rate]] products are a lot less bother than [[floating rate]] products, and tend to be unadjusted. | ||