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CFA Level I terms: numbers and symbols

4 terms, each with the lesson that teaches it. Follow a link to see the term in context, with worked examples and exam questions.

30/360

Under actual/actual, count the real days, leap days included. Under 30/360, every month has 30 days, and a 31st counts as the 30th.

Accrued interest, flat price and full price Fixed Income

30/360 day count

Corporate bonds usually use a tidier 30/360 day count: 30-day months in a 360-day year. Putting a corporate yield beside a government yield without adjusting for this compares different measuring sticks.

Current yield, simple yield and yield conventions Fixed Income

3y1y notation

The 3y1y notation reads "three-year into one-year", or "3's, 1's": a one-year rate starting three years from now.

Implied forward rates: from spot to forward and back Fixed Income

51% attack

Participants treat the longest valid chain as the true record, so an attacker would have to out-compute the rest of the network, which in theory takes most of its computing power. That is the 51% attack threshold, and it marks the limit of the protocol's security.

Distributed ledgers and blockchain: how digital assets are recorded Alternative Investments

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