1.5.3 Interest Rate Rounding Components

Table 1-15 Interest Rate Rounding Components

Field Description
Rate Rounding Rule You can either select Down, Up, or Near By
Rate Rounding Unit You can specify the rate rounding unit.
Rate Rounding Position You can select the rate rounding position from the drop-down list.
For example, if you select the Rate Rounding Rule as Down, Rate Rounding Unit as .01, and Rate Rounding Position as 1/100, then the following interest rate is applied to the contract.
  • Interest Rate Rounding Rule - Down with unit as .01
  • Interest Rate - 2.521
  • Rate after applying Rule - 2.52
Alternative Risk-Free Rates Preferences For OL module, the contract defaults RFR parameters like Lockout Days, Payment Delay Days, Lookback days, Index Value and RFR Rounding Unit from Interest Limit screen.

For LB module, RFR parameters like Lockout Days, Payment Delay Days and Lookback days are defaulted from Interest Limit screen to DD Product sub-system in Tranche screen. Then while booking DD Contract, the system defaults these parameters from Tranche to Drawdown screen.

Parent topic: Composite Rate for Loans