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 and euro-zone day-count convention for floating-rate notes based on Libor and Euribor is Actual/360. This convention calculates interest using the actual number of days in the period divided by 360.

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