Issue in calculation of Bonds accrued interest - Unit Quoted Bonds - 04K

[rohankamat1985]

Dear Friends,

I am facing an issue in calculation of accrued interest while purchasing a Unit quoted bond - 04K.

The amount of the accrued interest is coming divided by 10000.

It is not considering the base values of 5000000( nominal value 1000000 in FWZZ * No. of units 5 in FTR_CREATE)

It is considering the base value of only 500 due to which I am getting an interest of only 13.78.

I am attaching the details of the class master data and Bond contract over here.

Please let me know what I am missing in the deal.

Is there any issue in scaling?

Regards,

Rohan

[former_member198450 · Accepted solution]

Hi Rohan,

I didn't got whole you query.based on my understanding. Please consider below point on your issue.

When you try to create a class for any instrument in security, System will show you the calculation based on default value, Like below example. Even thought i have not updated nominal value system is showing cash flow for the same.

Please consider this point in your calculation. hope this will help you out.

[rohankamat1985 · Accepted solution]

Thank You Jain for your reply.

In my case, why the accrued interest amount is coming so less? (13.78)

Please check the details of the deal in the first screenshot that I posted here.

What process is used for calculation of accrued interest on the (No. of bonds * FV per bond) ?

As of now, it is multiplying the no. of 5 bonds with default value 100. So it is calculating the accrued interest on 500 (which is too not coming exactly correct) It is coming 13.78 , but by applying ACT/365, it should come 13.66.

Actually, It should be 136,643.84 as per ACT/365 as per the deal details.

Regards,

Rohan

[rohankamat1985 · Accepted solution]

Hi Friends,

The issue of calculation is solved. I changed the product type to 04I i.e. fixed interest bonds.

So closing this thread.

Regards,

Rohan