What are the conventions followed for the calculation of Accrued Interest?
The Day Count Convention to be followed for the calculation of Accrued Intetest in case of transactions in G-Secs is 30/360. I.e. each month is to be taken as having 30 days and each year is to be taken as having 360 days, irrespective of the actual number of days in the month. So, months like February, March, January, May, July, August, October and December are to be taken as having 30 days.
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