Question 21 in sample 2

This is the question about the effective interest rate on the interest rate collar. Why did they use 360 days to annualized the effective rate? Every example in the texts states that the formula should be annualized using 365 days. Any help would be appreciated. best, TheChad

Pretty sure it is a screw up.

Gotta love it…$20 says a question just like this shows up on the test and i will second guess myself because of the sample :stuck_out_tongue: