SIE practice questionmediumAccrued interest
A Treasury note trade settles on Monday, May 10. For accrued interest, what day count convention is used?
- AActual/actual✓ Correct answer
- B30/360
- C365/365
- D30/365
Explanation
Why A — Actual/actual
Treasury securities use the actual/actual day count for accrued interest, meaning actual days elapsed in period and actual days in the year.
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