The US and euro-zone day-count convention for a floating-rate note (based on Libor and Euribor,respectively)is
A)Actual/365.
B)Actual/360.
C)Actual/Actual.
D)30/360.

Question

Quizplus · Accepted Answer

The US day-count convention for a floating-rate note is Actual/360, while the euro-zone convention is Actual/365. Therefore, the best choice is B, which represents Actual/360.

The US and Euro-Zone Day-Count Convention for a Floating-Rate Note