Which of the Following Day Count Conventions Applies to a US

question 7

Multiple Choice

Which of the following day count conventions applies to a US Treasury bond?

• A) Actual/360
• B) Actual/Actual (in period)
• C) 30/360
• D) Actual/365

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Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to pay later.

Degrees of Freedom

Degrees of freedom typically represent the number of values in a calculation that are free to vary, often used in the context of statistical tests to specify the distribution of test statistics.

T Distribution

A probability distribution that is used in hypothesis testing for small sample sizes, when the population standard deviation is unknown.

Normal Distribution

A bell-shaped frequency distribution curve, where most occurrences take place in the middle of the range and fewer on the extremes, characterized by mean and standard deviation.