Skip to Content
A R

Need a variable spread rate for interest calculation in Treasury Money Market

Hi Experts,

We would like to calculate interest by using variable interest rate+ applicable spread on principal amount. I have an idea on how to use variable interest rate and one time spread rate. We need to use variable spread rate (dynamic spread rate) for calculating interest.

Example- Ref.interest rate LIBORUSD01 in January is 2% and the spread is 0.2%.System will calculate 2.2% interest on principal amount. The spread will change every month as like LIBORUSD01 interest rate.

Please let me know if there is any provision.

Thank you

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

2 Answers

  • Best Answer
    Jun 21, 2017 at 09:32 PM

    Thanks Nikhil!

    I could able to figure out the resolution. Multiple variable interest rates can be achieved using formula shown below.

    It would be helpful if you can share more information on using new interest condition.

    Thanks

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Jun 19, 2017 at 07:54 PM

    HI,

    You can achieve this by adding a new interest condition with new effective form date and new spread whenever it changes.

    Regards,

    Nikhil

    Add comment
    10|10000 characters needed characters exceeded