# 360 or 365 days in the year?

Just wondering if anyone has some good tricks they use to remember when to use a 360 or 365 day year in solving problems? There are so many little things to remember, that I feel this could get mixed up for me on exam day.

I’ll take a stab at few Payable/turnover/receivable period: 365 Treasury security coupon uses Actual/Actual MBS, CMO & Corp. etc uses 30/360 BDY & MMkt yield = 360 days EAY = 365 Treasury futures, ED futures = 360 days Interest payment on LIBOR based loan uses 365 days

i think Us uses 360 and the rest 365

florinpop Wrote: ------------------------------------------------------- > i think Us uses 360 and the rest 365 I actually think it’s even more complicated than that. http://www.treasurers.org/bookshop/resources/handbook06/daycount05.pdf

Not that you need to know all those details on the exam…

Regarding these examples, are there distractor answers on the exam that you would actually get the question wrong if you made a calculation with 360 instead of 365? Or should we know these differences not for calculations (as they would seem relatively minor in my undeduated point of view), but instead for the wordy conceptual questions instead?

i have def seem some distractors for 365/360 days although i think the most important ones are EAY (365), BDY,rMM (360) and all the fsa ones are 365 right? i don’t think there will be any other calculation intensive ones? any opinions?

hmm, EAY use 360 right?

EAY = ((1+hpr)^365/t) -1 BDY = (F-P)/F * 360/T rmm = HPR * 360/T

EAY is the only equation out of the three that cpk123 wrote that contains the word “annual”, so it is the only formula where you use a full year in the formula. That’s how I remember it.