How to change the interest calculation method to calculate the interest on effective interest rate and not the linear method?
For example:
amount = P
Rate = 11.4%
Start date = 23-04-2015
End date = 31-03-2018
1st interest calculation = 30-04-2016
2nd interest calculation = 31-05-2016
and so on till 31-03-2018.
In that case, the calculation should be = (P*(1+11.4)^(no of days elapsed/365))-P.
In our case no of days for first interest calculations would be 373 and for second 404.
I have tried to capture this NCD from security market with M+30/360. Tried to capture in FWZZ and created a contract with the same interest type in TS01. Accrued interest created at TS01 was posted via TBB1 and posted the interest from FWZE. I only find FWZE calculating the interest on the simple interest calculation method.
Can experts please help? and if this is possible, can you please also add in configuration steps and user manual steps?
Bluesky
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