leap year question

man · #1 10-05-2006, 04:26 PM

does APR rise on leap years or does the interest per day drop?

like, is the APR for a leap year equal to 366/365x?

or is the interest per day equal to 365/366x?

(or do we just skip that day.)

(the commonwealth of massachusetts depends on you.)

jively · #2 10-05-2006, 10:00 PM

Not sure this really matter so much, does it? Can this matter much more than 0.01%?

But I think daily compounding is based on a 360 day year...

-Tom

man · #3 10-06-2006, 08:57 AM

[ QUOTE ]
Not sure this really matter so much, does it? Can this matter much more than 0.01%?

But I think daily compounding is based on a 360 day year...

-Tom

[/ QUOTE ]
it's actually .27%.

it turns out the commonwealth doesn't recognize leap years.

jively · #4 10-06-2006, 01:51 PM

Here's something on the "Day count convention" for calculating the number of days between two dates: Wilipedia link

-Tom

NajdorfDefense · #5 10-06-2006, 04:30 PM

It totally depends on the security:
360/360
actual/actual
actual/365
365/365, etc.