Determination of Base Days for the Interest Calculation Method 

Use

The system uses this function to determine the number of Base Days that an interest year is to have for interest calculation.

The number of base days is a component of the interest formula and, therefore, a prerequisite for interest calculation. The determined number of base days is the denominator in the quotient Days divided by Base Days in the interest formula.

For more information about the structure of the interest formula and interest calculation, see Interest Calculation.

The system uses the function module FIMA_BASE_DAYS_OF_INTEREST to determine the number of base days. For more information, see the documentation for the function module in the system.

Integration

The following chart depicts the relationship between this function and other functions in interest calculation:

Features

To calculate base days, a base day method that is derived from the interest calculation method is needed as the import parameter. The base day method determines the number of days in an interest year. Additional period data (the number of days in a period, the number of periods per year) is required for the base day method actP.

The following base day methods are supported:

360

The interest year is a year with 360 days.

364

The interest year is a year with 364 days (= 52 weeks x 7 days).

365

The interest year is a year with 365 days.

366

The interest year is a year with 366 days.

252

The interest year is a year with 252 working days.

actP

The P suffix stands for the word Period.

The interest year is based on a year that is calculated by multiplying the actual number of days in a period by the number of periods in a year.

The six-month period from 01/01/06 inclusive until 07/01/06 exclusive, means a result of 362 base days (181 period days x 2). The next period from 07/01/06 inclusive until 01/01/07 exclusive, means a result of 368 base days (184 period days x 2).

actY

The Y suffix stands for the word Year.

This interest year is based on a year with the actual number of calendar days. Therefore, in a leap year, 366 days are assumed, and in a normal year, 365 days.

If a calculation period includes two calendar years of which the second is a leap year, the calculation is done in two parts, whereby x days / 365 + y days / 366.

In a calculation period from 12/01/03 until 01/09/04 the ratio of days / base daysis as follows:

31 / 365 + 8 / 366 = 39 / 365.20468246179729

In the intraday interest calculation, a calculation period from 12/01/03 00.00.00 until  01/09/04 01:01:01 means a ratio of (days+ seconds / 86400) / base days as follows:

31 / 365 + (8 + 3661 / 86400) / 366 = (39 + 3661 / 86400) / 365.20554374627278

actE

The E suffix stands for European.

This interest year is based on a year of 366 days if the period contains February 29th, otherwise the year has 365 days.