sale of commercial paper interest calculation for every three months

[former_member1311618]

Hi

For Commercial Paper for upfront interest we have to select "Nominal Value" in Define Transation types. and

for Interest calculation till 31/03/2016 and after that for every three month interest should be calculated till the deal period end.

What is the procedure to do this, and what are the settings to be done this. Please advice.

[Gustavo_Vazquez]

Hi Srikanth,

Thats looks more like a 55A Product Type than 53A.

Commercial Paper transactions are transactions on which no interest payments are made during the term of the transaction. Instead, two business partners agree on a repayment amount to be repaid to the investor by the borrower at the end of the life of the contract.

You have 2 options:

1- create multiple commercial papers

2- Use Interest Rate Instrument (55A)

Kind Regards

[former_member1311618]

Thank you Gustavo Thank you for your inputs.

Kind Regards

Srikanth K