Guys, Any quick-list of where to use 365 & where to use 360? This is one detail I am def. going to muck up on the test! Cheers & all the best!
Indeed, Money Market rates and Discount rates are both using 360 but I always have to think twice. Typically the FRA is 360 since a 180 day or 90 day comes out to a nice .5 ratio or .25 for calculation. The days payable calculations use (1+x/(100-x))^365/n -1. I’m still unsure about the difference between EAY and BEY myself so I won’t go there. I need to double check on those. This is all from memory so I can’t guarantee its mistake - free.
Thanks!