What are terms used in this collection of Day Count Convention tutorials?

Terms used in this collection of Day Count Convention tutorials are listed below:

Accrual Frequency - Accrual Frequency refers to the Compound Frequency or the Interest Frequency.

Accrual Period - Accrual Period refers to the Compound Period or the Interest Period within which an Accrual Range is being given to calculate the Accrued Interest.

Accrual Range - Accrual Range is a given date range for which the Accrued Interest is being calculated.

Accrual Year - Accrual Year refers to the year within which an Accrual Range is being given to calculate the Accrued Interest.

Accrued Interest - Accrued Interest on a CD refers to the Accumulated Interest in the CD account.

Accumulated Interest - Accumulated Interest is the interest accumulated in a compound period or a interest period that has not been reinvested or paid out as cash. Accumulated Interest is also referred as the Accrued Interest.

APR (Annual Percentage Rate) - APR on a CD refers to the Interest Rate of the CD.

APY (Annual Percentage Yield) - APY is the percentage of the deposit balance you earned as interest in a year. APY is performance indicator of the CD.

Calendar Days - Calendar Days is the number of days counted according the Gregorian calendar.

Compound Interest - Compound Interest is a method of calculating interest on the sum of the initial deposit amount and the accumulated interest. Compound Interest allows the accumulated interest to be reinvested in the CD account.

Compound Frequency - Compound Frequency is the number of Compound Periods in a year. Compound Frequency defines how often the accumulated interest is reinvested.

Compound Period - Compound Period is a date period within which interest is accumulated until the end of the period, before getting added to the Principal balance.

Crediting Period Crediting Period is a date range within which interest is accumulated until the end of the period, before getting credited (posted) to the CD account.

Daily Interest Rate Daily Interest Rate is the percentage of the Principal you earned as interest in a single day. It can be calculated as the Interest Rate divided by the Days in Year.

Day Count Convention - Day Count Convention is a specific method of counting days in a date period and days in a year for the purpose of calculating the Day Count Factor. Commonly used methods are: Actual/Actual, Actual/365, Actual/360, and 30/360.

Day Count Factor - Day Count Factor is the factor of Days In Range over Days In Year, which is applied to the Interest Rate when calculating the interest earned in a given period of time. Day Count Factor is also referred as Year Fraction.

Day Count Basis - Day Count Basis refers to Days In Year.

Days In Period (DiP) - Days In Period refers the number of days in the Accrual Period considered as a factor of the denominator of the Day Count Factor.

Days In Range (DiR) - Days In Range refers the number of days in an Accrual Range considered as the numerator of the Day Count Factor.

Days In Year (DiY) - Days In Year refers to the number of days in the year considered as the denominator of the Day Count Factor. Days In Year is also referred as Day Count Basis.

Deposit Amount - Deposit Amount is the amount of money you put into the CD as the initial deposit. Deposit Amount is also referred as the initial Principal of the CD.

Deposit Term - Deposit Term is the fixed period of the deposit, starting from the deposit date (inclusive) until the maturity date (exclusive).

End Of Month (EOM)) - End Of Month is the last day of a calendar month: 30th day of a 30-day month, 31st day of a 31-day month, 28th day of February of a non-leap year, and 29th day of February of a leap year.

Interest Method - Interest Method refers to one of the methods: Simple Interest or Compound Method.

Interest Period - Interest Period is a date period within which interest is accumulated until the end of the period, before getting paid out of the CD account.

Interest Rate - Interest Rate is the percentage of the Principal you earned as interest in a single interest period or a single compound period on an annual basis. Interest Rate is also referred as the Nominal Rate, or APR (Annual Percentage Rate).

Nominal Rate - Nominal Rate refers to the Interest Rate of the CD.

Interest Frequency - Interest Frequency is the number of Interest Periods in a year. Interest Frequency defines how often interest flows out as cash.

Principal - Principal is the amount of money in the CD that earns interest.

Simple Interest - Simple Interest is a method of calculating interest only on the initial deposit amount. Accumulated interest is not reinvested into the CD.

⇒ Day Count Convention - "30/360"

⇐ Day Count Programming Libraries

⇑ Introduction to Day Count Convention

⇑⇑ Day Count Conventions