I am aware that OIS is the new reference/risk-free rate for collateralized cashflows. OIS is by definition an overnight rate (annualized, I assume). So once I have constructed my OIS yield curve, what does it actually mean as I go along the different tenors.
For example, would the yield at 5yr represent the fair swap rate indexed against the expected overnight lending rates for the next 5 years. How is interest even calculated on the overnight lending? Would it simply be expected rate*(1/360)?
Just curious about how to view OIS rate that is dated beyond overnight, i.e. longer maturity