## 30 360(NASD)

Subtype of NameNASD convention

Let

**be the period between two dates**

*[T₁,T₂)***and**

*T₁***, of which the length**

*T₂***in annual units must be calculated**

*L*Calculation rule:

Let

**be the effective number of days of the period**

*N***, formally defined as the difference:**

*[T₁,T₂)***, with the effective starting date**

*T'₂ - T'₁***and ending date**

*T'₁***differing from**

*T'₂***and**

*T₁***in the following occations:**

*T₂*If

**occurs on the**

*T₁***of a month, then**

*31ˢᵗ***becomes equal to the**

*T'₁***of the same month.**

*30ᵗʰ*If

**occurs on the**

*T₂***of a month and**

*31ˢᵗ***is earlier than the**

*T₁***of any month, then**

*30ᵗʰ***becomes equal to the**

*T'₂***of the next month, otherwise**

*1ˢᵗ***becomes equal to the**

*T'₂***of the same month.**

*30ᵗʰ*Then

*L = N/360*