You manage interest on the debt on **Interest**.

To set debt schedule interest:

In Day of the Month for Interest Payments, select a day of the month to make interest payments:

The interest payment day is the same as the debt was issued. For example, quarterly interest payments on a debt issued on June 8 are paid on September 8, December 8, March 8, and June 8.

If a contract specifies a date within each month for interest payments, but the issue date of the loan is not that same day, select this option. For example, if a loan is issued on April 7, but interest payments should occur on the 15th of each month, use this option to specify the 15th.

With

**Specified Day of the Month**, enter the day of each month for interest payments in**Payment Day**.

Under Cash Interest, define how cash interest is handled:

In

**Frequency of Interest Payment**, select the frequency of interest payments.Debt Scheduler calculates interest expense on a daily basis, but you define when interest payments occur. Each option has a different effect on overall cash flow:

If interest payments occur on any day except the last of the month, interest accrues at the end of every reporting period. With

**Daily**, interest is paid as it is incurred, so the cash flow of the interest matches the expense, and no interest accrues.Use

**Balloon**to calculate zero interest payments through the life of the debt, but pay all interest in one lump sum at the end of the schedule.

Select

**Interest Rate Input Is**to define variable or constant interest rates for each period. Applies only to simple interest—does not include compounding.**Optional:**Select**Spread over another account**for loans affected by macroeconomic variable.Some loans interest rates depend on macroeconomic variables. With

**Spread over another account**, Debt Scheduler calculate interest by combining the rate in**Interest Rate Input Is**combined with output values from an account you select in**Spread Account**as the macroeconomic variable.**Optional:**Select**Use Grid Pricing**to define rules changing interest rates according to criteria over time.Use grid pricing to define rules changing the interest rate according to company performance in time periods.

Enter a date when the grid pricing rule takes effect in

**Date to start repricing**, and click**Edit Grid Pricing**to create rules.see Using Grid Pricing.

Optional: Under PIK Interest, define paid-in-kind (PIK) interest:

In

**Added to Principal**, define how often interest is added back into principal:**PIK Interest Rate**displays the rate of paid-in-kind interest. The PIK interest rate account (v16xx.65) must be forecast as constant in all periods. Varying PIK interest rates can not be forecast here.Paid-in-kind interest is non-cash interest, so it is added back to the principal. You define how often to add interest back into the principal. As interest is calculated on a daily basis, subsequent interest calculations are increased depending on how often interest is added back into the principal.