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You purchase a bond and the bond goes into default. You set up the debt default period rule with the Default Begin Date field equal to the start of the coupon period and set the Default Type to Both. You then invoke earnings for a date in that coupon period, Eagle Accounting zeroes out the Accruals, and Amortization but not the Traded Interest Purchased. At the end of the coupon period, Eagle Accounting creates a coupon for the period of interest purchased. You then must make a decision about how to handle the interest purchased, and based on this decision, perform the appropriate manual transaction.