Interest rate basis

The basis of an interest calculation is a convention whereby an interest amount is calculated from the principal, expressed in units of a specified currency, and a percentage, and an agreed start and end date There are many conventions, including

(1) SemiAnnual

    C = P.R / 2

Commonly used for bond coupon calculation

(2) Actual 365

    C = P.R. (EndDate - Startdate)/365

where start and end dates are expressed as Julian Dates

Commonly used in the sterling markets and in for "Commonwealth"currencies

(3) 30 / 360