A	B	C	D	E	F	G	H	I	J	K	L	M	N
2
3		Example: DayCount with ACT/ACT
4
5		n  Uses DiffY
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7		ACT/ACT Basis: using an AnnualSequence for Actual/Actual (in period) calculations
8
9		ACT/ACT (in period) is a very common basis for bond and other calculations. For example, it is used for government bond calculations in
10		the US, Canada France, Spain and New Zealand.  It is also used implicitly in the calculation of real estate rents.
11
12		ACT/ACT (in period) is quite different from ACT/365 or ACT/(365/366).  ACT/ACT (in period) determines the number of fractional periods
13		between two dates, and then applies that to the annualised rate as determined by multipling the rate per period by the frequency per year.
14
15		The following example shows how to do ACT/ACT in period firstly from first principles, then using an AnnualSequence in BusinessFunctions,
16		and finally using the bond formula ACCRINT, supplied with Excel.
17
18		The AnnualSequence method is the most flexible because it will be correct even when the day in the month of a periodic payment changes.
19		This is because you have the ability to specify any dates you wish, and the functions will assume an equal periodic payment to be made on each
20		of these dates, even if they are not even.  In the Real Estate industry, UK rental quarter days (AnnualSequence of {25.3,24.07,29.09 and 12.25})
21		are an example of this.
22
23	1	Calculation From First Principles
24		Coupon Period					TimePeriod
25		From	To	PmtFreq	Days		From	To	Days		ACT/ACT	or	ACT/ACT
26		15 Jan 01	15 Apr 01	4	90 days	(a)	15 Jan 01	30 Mar 01	74 days		0.2056 years		0.2056 years
27						(b)	15 Jan 01	31 Mar 01	75 days		0.2083 years		0.2083 years
28						(c)	15 Jan 01	1 Apr 01	76 days		0.2111 years		0.2111 years
29	2	Or, by Using an Annual Sequence
30		Sequence					From	To			ACT/ACT		Checked
31		(1.14)				(a)	15 Jan 01	30 Mar 01			0.2056 years		Correct
32		(4.14)				(b)	15 Jan 01	31 Mar 01			0.2083 years		Correct
33		(7.14)				(c)	15 Jan 01	1 Apr 01			0.2111 years		Correct
34		(10.14)
35
36	3	Or, by Using Payment Frequency to estimate the annual sequence
37		using Excels Bond Formulae (ACCRINTM)					From	To			ACT/ACT		Checked
38		Maturity	15 Apr 01			(a)	15 Jan 01	30 Mar 01			0.2056 years		Correct
39		Frequency	4	p.a.		(b)	15 Jan 01	31 Mar 01			0.2083 years		Correct
40		Basis	1	ACT/ACT		(c)	15 Jan 01	1 Apr 01			0.2111 years		Correct
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