YEARFRAC & Leap Years

Jul 30, 2007

It looks like a pretty silly problem but it's driving me mad. The yearfrac function takes a two dates and a basis. Now assume basis = 1 ( Act / Act ) and two cases:

1) 06-Jan-06 -> 06-Jan-08 ( 730 days ) = 1.998175182 =>> divisor = 730/1.998175182 = 365.33333

2) 06-Jan-05 -> 06-Jan-07 ( 730 days ) = 2 =>> divisor = 730/2 = 365

In case 1) 2008 is a leap year ( but the "leap" has yet to come! ). Can anyone explain me the logic behind? I suppose the extra day is divided by 3 but where is the "Actuality" of the divisor?

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