About Earnings for PIK Bonds
- Nancy Cohn (Deactivated)
- Kinga Huszno
Owned by Nancy Cohn (Deactivated)
The accrual process for PIK bonds creates a coupon on the entitlement date (Coupon Payment Date -1) of the parent bond if no corporate action record exists. Setting up the PIK corporate action is not required to recognize a cash payment.
Optionally, a PIK corporate action can be used to process PIK Shares or Cash and Shares for any given period.
If you elect a rounding option for the Treatment of Fractional Shares (tag 3965) field, Eagle Accounting rolls back and replays income to adjust income for the fractional amount posted for the period.
The system calculates amortization using the normal amortization process, based on the specified rule.