Reading 39, when discounting by 2-month for example, swaps use 60/360 but others use (1.0XX)^2/12

CFA Level III
#1

Why only swaps are discounted by, say, 1+(4%)*60/360 while all others are discounted by (1.0XX)^(2/12)? Appreicate any help.

#2

4% is LIBOR - and these are Add on - not exponential …

#3

cpk123 Wrote: ------------------------------------------------------- > 4% is LIBOR - and these are Add on - not > exponential … Boom.