Which of the following day count conventions applies to a US Treasury bond?
A) Actual/360
B) Actual/Actual (in period)
C) 30/360
D) Actual/365

Question

Quizplus · Accepted Answer

Actual/Actual (in period)is used for US Treasury bonds.This means that the interest earned during a period that lies between two coupon payment dates is calculated by dividing the actual number of days in the period by the number of days between the coupon payments and multiplying the result by the next coupon payment

Which of the Following Day Count Conventions Applies to a US