The day count conventions, in general, describe how to calculate the fraction of a year between two dates.
A three month period will have a day count fraction of around .25, a six month period around .5, etc.
For 30/360 calculations the numerator is based upon months being uniformally treated as having thirty days, with differences around how you handle the 31st day of the month and dates around the end of february.
The denominator is always 360.
So, for example, 1 Jan 2006 to 1 Apr 2006 would have a numerator of 90 (3 months multiplied by 30) and a denominator of 360. The day count fraction is 90/360 = 0.25.
Hi André,
The day count conventions, in general, describe how to calculate the fraction of a year between two dates.
A three month period will have a day count fraction of around .25, a six month period around .5, etc.
For 30/360 calculations the numerator is based upon months being uniformally treated as having thirty days, with differences around how you handle the 31st day of the month and dates around the end of february.
The denominator is always 360.
So, for example, 1 Jan 2006 to 1 Apr 2006 would have a numerator of 90 (3 months multiplied by 30) and a denominator of 360. The day count fraction is 90/360 = 0.25.
I hope I understood your question correctly!
Best regards,
David