Define: Actual/Actual
Actual/Actual means the calculation of interest based on actual days elapsed in a period, divided by [365 or 366 for a leap year]
Actual/Actual means the calculation of interest based on actual days elapsed in a period, divided by [365 or 366 for a leap year].
Relevant Circumstances
- When interest accrues on actual days elapsed rather than a 360-day convention
- If leap-year adjustments must be reflected in the calculation
- Where bond or loan documentation specifies the actual/actual day-count