The rate type applicable for the product, that the contract involves, is displayed here. It can be one of the following:

• Fixed
• Floating
• Special

You can change the rate type from ‘Floating’ to ‘Fixed’ or vice-versa during the tenor of a contract. The schedules will be recalculated based on the new interest rate.

If the Interest Rate Type (previous field) has been specified as Floating, indicate the Rate Code to which the product has to be linked. Similarly if a fixed rate contract has been linked to the deposit product, you will have to specify a fixed rate contract here. The fixed rate identified for the main component of the linked contract will apply to the deposit contract also.

This field indicates how the system must consider the tenor basis upon which interest is computed over a schedule or interest period, in respect of the interest component being associated with the product. The specification made for the specified interest class is defaulted in this field. You can alter the default, if necessary, and select the required Interest
Period Basis from the drop down list.

You can choose any of the following options:

• Including the From Date: For all schedules, the period considered for interest calculation would include the start date and exclude the end date. Therefore, the value date of the contract is considered for interest calculation and the maturity date is excluded.
• Including the To Date: For all schedules, the period considered for interest calculation would exclude the start date and include the end date. Therefore, the value date of the contract is excluded, but the maturity date is included for interest calculation.
• Including both From and To Dates: The period considered for interest calculation would include both the value date and the maturity date. This means the following:
• For the first schedule, it would include the Value Date. Interest would be calculated for the Value Date
• For the last schedule, it would include the Maturity Date. Interest would be calculated for the Maturity Date
• Excluding both From and To Dates: The period considered for interest calculation would exclude both the value date and the maturity date. This is:
• For the first schedule, it would exclude the Value Date. No interest would be calculated for the Value Date
• For the last schedule, it would exclude the end date. No interest would be calculated for the Maturity Date

This field is applicable only for contracts using a product with Fixed Interest Rate Type. It indicates the minimum interest rate that can be applied on the deal, and the value is defaulted from the specification made for the product used by the contract. If the interest rate specified for a deal is less than this minimum rate, this rate will be applied on the deal.

If the product involved in the contract has a fixed interest rate defined then at the contract the attributes defaults. The rate which gets defaulted from the product can be changed.

If the contract was already initiated when it was input, the interest amount that has been accrued should be entered here. The amount will be taken into account during the next liquidation cycle. You can make changes to the acquired interest through this screen.

This field is applicable only when the interest Rate Type is Floating. Specify the minimum spread that can be applied on a contract involving this Product and Component. If the spread specified during contract processing is less than the value in this field, this value will be picked up as the spread.

The attributes of an interest component that have been defined for a product will be applied on a contract involving the product. If, for some reason you do not want to apply the interest component for the contract you are processing, you can do so by checking this field. The interest will be calculated but it will not be applied on the contract.

To amend a contract, you have to load the Contract Interest, Charge and Fee screen of the ICCB module through the Value Dated Changes function.

While defining an interest class for the bills module, you can use this field to indicate whether the interest component is to be considered for discount accrual on a constant yield basis. Checking this box indicates that the interest component is to be considered for discount accrual on a constant yield basis.

If you select this option the interest received against the component is used in the computation of the constant yield and subsequently amortized over the tenor of the associated contract.

Checking this option also indicates that the interest components are to be considered for calculation of the Internal Rate of Return.

This is applicable to the interest methods which have their interest basis set to ACTUAL i.e. 30(EURO)/ACTUAL, 30(US)/ACTUAL and ACTUAL/ACTUAL. Denominator Basis is used to specify how the month of February is treated when the denominator is 'Actual'.

There are two types of denominator basis methods:

• Per Interest Basis – Here the computation would be done based on ACT/ACT–ISMA Interest Method. In this case, the '366 Basis' field will not be applicable
• Per Annum (A) – Here the interest calculation will depend on the value you specify for 366 Basis.

This is applicable only if the Denominator Basis is set to 'Per Annum'. You can select one of the following values here:

• Leap Year
• Leap Date – computation would be done based on ACT/ACT–FRF Interest Method

This is applicable if the Denominator Basis is 'Per Interest Period'. Here you can specify the number of Interest periods (Schedules) in the financial year.