Entering Constant Method Amortizing Loans

On April 30, 2003, you initiate a bank loan of $450,000 USD, with a fixed rate of 5%. The settlement date is May 2, 2003 with a term of three years (1096 days). The Straightline Method is used for the Discount/Premium and the loan is to be amortized using the Constant method.

Page	Field	Field Value
Deal Detail
	Unit	US001
	Deal ID	358
	Instrument Type	BANKLOAN
	Transaction Date	04/30/2003
	Instrument Base Type	Interest Rate Physical
Interest Rate Physical Details
	Settlement Date	05/02/2003
	Term	1096
	Maturity Date	05/02/2006
	Issue Date	05/02/2003
	Interest Period Start Date	05/02/2003
	Classification	Debt
	Rate Type	Fixed
	Rate	5.0
	Day Count Basis	Actual/360
	Interest Calculation	Interest Bearing
	Par Amount	450,000.00
	Currency	USD
	Settlement Amount	450,000.00.
	Price % of Par	100.0 (Automatically populated with the default value.)
	Discount/Premium	Straightline Method
	Amortization Method	Constant Payment
	End Principal	0.00
Interest Dates and Calculation
	Repeat Interest Dates	Selected
	Interest Frequency	Semi-Annual
	Business Day Convention	Modified Following
	Next Interest Payment	Traded Cum-Interest
	Interest Calculation	Same Interest each Period Normal First Coupon Period Normal Last Coupon Period
	Interest Date Rule	Forwards from Issue Date
	Payment Date	Business Days - Paid in Arrears
	+/- Payment Days	0
	+/- Reset Days	0
	Accounting Treatment	Held to Maturity
	Counterparty	USBNK
	Issuer	USBNK
	Guarantor	USBNK
	Description	3 Years to 2006–05–02 Debt USD 450K @5%
	Deal Status	Open

When you process a deal, the system (using the TR_POSN process) automatically populates the interest date, amortization and cashflow details with the calculated values.

Page	Field	Field Value
Interest and Payment Dates page
	Type Period End Date Payment Date Amount Principal Balance Interest Payment Principal Payment	Interest 11/02/2003 11/03/2003 -81,697.49 -450,000.00 -11,250.00 -70,477.49
	Type Period End Date Payment Date Amount Principal Balance Interest Payment Principal Payment	Interest 05/02/2004 05/03/2004 -81,697.49 -379,552.51 -9,488.81 -72,208.68
	Type Period End Date Payment Date Amount Principal Balance Interest Payment Principal Payment	Interest 11/02/2004 11/03/2004 -81,697.49 -307,343.83 -7,683.60 -74,013.89
	Type Period End Date Payment Date Amount Principal Balance Interest Payment Principal Payment	Interest 05/02/2005 05/02/2005 -81,697.49 -233,329.94 -5,833.25 -75,864.24
	Type Period End Date Payment Date Amount Principal Balance Interest Payment Principal Payment	Interest 11/02/2005 11/03/2005 -81,697.49 -157,465.70 -3,936.64 -77,760.85
	Type Period End Date Payment Date Amount Principal Balance Interest Payment Principal Payment	Interest 05/02/2006 05/02/2006 -81,697.47 -79,704.85 -1,992.62 -79,704.85
Cashflows
	Settlement Date Description Amount Currency	05/02/2003 Principal 450,000.00 USD
	Settlement Date Description Amount Currency Nominal Date Interest Date	11/03/2003 Interest -81,697.49 USD 11/02/2003 11/03/2003
	Settlement Date Description Amount Currency Nominal Date Interest Date	05/03/2004 Interest -81,697.49 USD 05/02/2004 05/03/2004
	Settlement Date Description Amount Currency Nominal Date Interest Date	11/02/2004 Interest -81,697.49 USD 11/02/2004 11/02/2004
	Settlement Date Description Amount Currency Nominal Date Interest Date	05/02/2005 Interest -81,697.49 USD 05/02/2005 05/02/2005
	Settlement Date Description Amount Currency Nominal Date Interest Date	11/02/2005 Interest -81,697.49 USD 11/02/2005 11/02/2005
	Settlement Date Description Amount Currency	05/02/2006 Principal & Interest -81,697.47 USD