Change Amortization Rule
In this example, you purchase a security in entity TaxDemo2 with a Trade Date and Settle Date on 20140401; Par is 1,000,000.00, the Price is 99.00.and has been accrued to 20140406. A New Amortization Rule becomes effective, and the Amortization Method changes from Constant Yield 2 to Level Yield 2, retrospectively.
The following tables describe the security and the entity used for this example.
Security Master Information Option |
Value |
|---|---|
Issue Name |
FI Issue Tax Type Change |
Description |
FI Issue Tax Type Demo |
Ticker |
FIITTD |
Primary Asset ID |
555555555 |
Processing Security Type |
DBIBFD |
Issue Date |
20091015 |
Dated Date |
20091015 |
First Coupon Date |
20100415 |
Last Coupon Date |
20180415 |
Maturity Date |
20181015 |
Coupon Type Code |
Fixed |
Coupon Rate |
5.00 |
Day Count Basis |
30/360 |
Issue Country |
United States |
Payment Frequency |
Monthly |
Issue Tax Type |
Standard |
Primary Exchange |
Boston |
Entity Information Option |
Value |
|---|---|
Entity ID |
TAXDEMO2 |
Portfolio Country |
United States |
Accrue Tax Indicator |
Yes |
Entity Tax Type |
MF (Mutual Fund) |
Entity Tax Qualifier |
Level 1 |
Results. Eagle Accounting recalculates the amortization yield and retrospectively calculates where the amortization should be, life-to-date, based on the new Amortization Method. The result is an amortization delta change on 20140407, to bring Eagle Accounting in line based on the life-to-date amortization.
The resulting Income Archive appears in the following table.
Amort Method |
Trade Date |
Amortization Yield |
Accounting Date |
|
Earn Thru Date |
Amortization Delta |
Amort Life-to-Date |
|---|---|---|---|---|---|---|---|
CY2 |
Apr 01 2014 |
6.255626259859 |
Apr 01 2014 |
Apr 01 2014 |
|
7.67 |
7.67 |
CY2 |
Apr 02 2014 |
6.255626259859 |
Apr 02 2014 |
Apr 02 2014 |
|
7.67 |
15.34 |
CY2 |
Apr 03 2014 |
6.255626259859 |
Apr 03 2014 |
Apr 03 2014 |
|
7.67 |
23.01 |
CY2 |
Apr 04 2014 |
6.255626259859 |
Apr 04 2014 |
Apr 04 2014 |
|
7.67 |
30.68 |
CY2 |
Apr 05 2014 |
6.255626259859 |
Apr 05 2014 |
Apr 05 2014 |
|
7.67 |
38.35 |
CY2 |
Apr 06 2014 |
6.255626259859 |
Apr 06 2014 |
Apr 06 2014 |
|
7.67 |
46.02 |
LY2 |
Apr 07 2014 |
6.256489374660 |
Apr 07 2014 |
Apr 07 2014 |
|
-8.93 |
37.09 |
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