AAA Bank bought an interest rate floor with a 1 year maturity and quarterly settlement payments on April 1, July 1, October 1, and next year January 1
For calculating the effective interest on July 1 the number of days I should use will be 91 days
April – 29 days
May – 31 days
June - 30 days
July – 1 day
Kindly confirm if the above is correct.