About Calculating Amortization Yield for Convertible Bonds
During processing, the system calculates amortization for a convertible bond bought at premium based on the Convertible Option Price Method defined for the amortization rule in effect for the lot, along with other criteria. You can choose a Convertible Option Price Method of Stated Redemption Price at Maturity (SRPM) or Embedded Equity Option Value.Â
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