# NOK NOWA overnight day count

The NOK overnight index NOWA is defined as:

Reported interest rates shall be calculated as nominal annual rates for the actual number of days in the year ahead (365 or 366). (The percentage return over the term is calculated by dividing the interest rate by the actual number of days in the year ahead and multiplying it by the actual number of days to maturity).

As far as I can tell, this is a relatively non-standard day count (because it refers to the year from the fixing date). My interpretation of the rule gives:

• Fixing on 2015-02-28 = 365 days (2015-02-28 to 2016-02-27 inclusive)
• Fixing on 2015-03-01 = 366 days (2015-03-01 to 2016-02-29 inclusive)
• Fixing on 2016-02-28 = 366 days (2016-02-28 to 2017-02-27 inclusive)
• Fixing on 2016-02-29 = 365 days (2016-02-29 to 2017-02-28 inclusive)

Two questions:

• Is my interpretation correct?
• Does this day count have a recognised name?
• Following the answer below, we decided to create a new day count for this in Strata which we called 'Act/Act Year'. We did this because 'Act/Act ICMA' requires lots of additional data (coupon frequency, EOM convention, and coupon dates) whereas 'Act/Act Year' only needs the two dates as input. – JodaStephen Jun 28 '16 at 11:14