The following example shows how the Step Bond Utilize Bifurcation Method option you select for an amortization/accretion rule affects step bond yields.
Sample Trade Details
| Issue Date |
...
| 1/1/2005 | |
| Maturity Date |
...
| 1/1/2035 | |
| Trade Date |
...
| 6/3/2013 | |
| Settle Date |
...
| 6/3/2013 | |
| Purchase Price |
...
| 90 |
Sample Variable Rates
Effective Date | Current Variable Rate |
|---|---|
2005-01-01 | 0 |
2020-01-01 | 30 |
...