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The following are the options in the Amortization & Accretion Rules panels.
| Option | Tag | Description |
|---|
| Step Bond Utilize Bifurcation Method | 3934 | Indicates how to recognize future cash flows (variable rates) for amortization yield calculation of step bonds. Eagle Accounting recognizes a security as a step bond when you set the Coupon Type Code (tag 97) option to Step Rate (S). Options include: - Bifurcation. Eagle Accounting's Earnings process recognizes each coupon rate as it becomes effective for purposes of deriving cash flows and, in turn, amortization yields.
- No Bifurcation Par Restricted. Default. Eagle Accounting's Earnings process recognizes current and future coupon rates for the purpose of deriving cash flows, and, in turn, amortization yield. In the event that amortization/accretion transcends par, Eagle Accounting amortizes to par and stops. This option overrides the amortization rule's Amortization Cap/Floor Method (tag 10130) field setting.
- No Bifurcation Transcend Par. Eagle Accounting's Earnings process recognizes the current and future coupon rates for the purpose of deriving cash flows, and, in turn, amortization yields. This option overrides the amortization rule's Amortization Cap/Floor Method (tag 10130) field setting.
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