The question I've been stuck is: We have a deposit of 10 million on 2011-04-01 for 7 days at 4 percent, assume T+2 settlement, calculated with ACT/365 basis and following business day convention. (04-09, 04-10, 04-11, and 04-12 holiday) What's the interest amount we receive at maturity?
The given answer is \$12,054.8, but I checked repeatedly, but I don't understand how to get to $12,054.8. I assumed the answer is calculated by:
$$10,000,000 \times 0.04 \times 11/365=12,054.8$$
I don't get why it's 11 days out of 365.