Confused about future value calculation

CFA Level II
#1

In Equity/Currency problems, future value is calculated compounding manner as -

Fv = Pv *(1 + r)(days/365)

Whereas in rates/Bonds/FRA problems, future value is calculated as -

Fv = Pv *(1 + r*days/365).

Can someone please help me understand the reasoning behind this? And when to use what formula?

#2

Whenever you are using effective rates, you use the first formula.

Whenever you are using LIBOR rates, you use the second formula.

#3

Or Eurobor, or BEY, or any other _ nominal _ rate.

#4

Shouldn’t a 360 day convention be used for LIBOR, EUROBOR, etc (pretty much everything other than effective rates)?

#5

Good point.

Yes, LIBOR, Eurobor, and so on use 30/360.