on 11-28-2019 12:16 AM
Hi,
I am creating a zero coupon bond with LAC amortization (1000) assigned to PMP. Below are the details:
Payment Amount: 988,660
Nominal Amount: 1,000,000
Total positive Amortization: 11,340
Issue date: 15.08.2019
End date: 14.08.2020
Interest calculation method in bond class: Act/365.Calculation/Position/Payment date: 26.11.2019. ('Inclusive' is ticked)
As per the above, LAC amortization as on 30.11.2019 should be 11,340 * (5/262) = 216.41 - (5 days in November 26th to 30th and 26.11.2019 to 14.08.2020 is 262 days)
However, system is calculating 11,340 * (4/262) = 173.13.
So instead of taking 5 days, it is taking 4 days for November amortization.
Can you someone explain what is going wrong here? Any help would be appreciated
Regards
Abhinav
Below two notes helped resolve the issue
1478980 - LAC: Exclude end-of-term from amortization period’ in conjunction with note 443763 (already implemented)
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