About Yield Calculation for Sinking Fund Bonds
- Nancy Cohn (Deactivated)
If the Entity/Security combination dictate that Eagle Accounting should capitalize the sinking fund security, Eagle Accounting takes into account the principal repayment when calculating expected future cash flows (both principal and interest) for the security. If the values in the sinking fund schedule change, Eagle Accounting recalculates the yield with the new reference data.
If the Entity/Security combination dictate that Eagle Accounting should not capitalize the sinking fund security, Eagle Accounting does not take into account the principal repayment when calculating expected future cash flows for the security, and calculates the principal repayment at redemption date. If the values in the sinking fund schedule change, Eagle Accounting does not recalculate the yield with the new reference data.