What is the daily conference?
The daily Convention is a process that helps in the task to determine the set standard for calculating interest that has been accumulated between coupon data, focusing on actual days that persist between the current date and the next date of the investment coupon. The process can use real data on the basis of a calendar year or use a system that assumes an average number of days in each month. Since different approaches to the daily Convention use different bond markets, it is important that the investor understands the Convention or Standard, which is used in attempting to project the return that the bond eventually generates.
Jedním z běžnějších přístupů k denní úmluvě je zakládání strategie za předpokladu, že s kalendářním rokem je každý měsíc 30 dní. This is important for how the interest in bond issuing is accumulated, because it will usually be structured as an annual rate that is used for increments for every 30 -day period. By knowing that this standard is used rather than kaA lending year for increasing interest every month, the investor is able to monitor how much return will be generated by another coupon date.
Similarly, if the Convention or Standard for the daily number is based on a calendar year, the assumption will include a 365 -day season with different days in each month. This means that several months will accumulate interest based on 31 days, others in 30 days and a month of February for 28 or 29 days. By realizing that this standard is used, the investor can allow deviations in the months and realize that interest -grown bonds will vary by month from the month, based on differences in the actual number of days included in these months.
The key problem with the daily Convention is to know which standard is used and to be ready to use this standard when screening the accumulated interest that will earn every period. Because more than one hundred is usedNDARD or Convention, investors must determine which access serves as a standard for the bond market where the asset is traded. This makes it possible to avoid the assumptions of how interest is accumulated, and eventually the revenues that are reflected in the investment, allowing the investor to make an informed decision on whether to move forward with the purchase.