In accounting, the accrual basis of an interest calculation is a convention whereby an interest amount is calculated from the principal, expressed in units of a specified currency, and a percentage, and an agreed start and end date. The more commonly used conventions are listed below.
(1) SemiAnnual
(2) Actual 365
Actual 365 is commonly used in the sterling markets and for "Commonwealth" currencies. In the United Kingdom, it is known as "money market basis".
(3) 30 / 360
This method assumes every year has 360 days, and every month 30 days, computed as
This convention is the US market standard, also (confusingly) known as "money market basis".
(4) Euromarket convention
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