3.6.1 Maintain Contract specific Forward Interest Rates for Revaluation

This topic describes the systematic procedure to maintain contract specific Forward Interest Rates for Revaluation.

Maintain contract specific forward interest rates to revalue those contracts whose fair price is to be determined based on the forward interest rates maintained for the particular contract.

The system creates and stores records in the Contract Interest Rates Maintenance screen for those contracts whose fair price is to be determined based on the forward interest rates maintained for the contract.

1. On Homescreen, type DVDCNRAT in the text box, and click next arrow.
   The Derivatives Revaluation Contract Interest Rates screen is displayed.

   Figure 3-10 Derivatives Revaluation Contract Interest Rates

   
   Description of "Figure 3-10 Derivatives Revaluation Contract Interest Rates"
2. On the Derivatives Revaluation Contract Interest Rates screen, specify the fields.
3. On the Summary screen, click Summary options under the contract screen to indicate the forward interest rates of individual contracts. Select Unlock from the Actions menu in the Application tool bar or click the unlock icon.

   Enter the interest rate(s) required for each contract and confirm it.

4. Select New from the Actions menu in the Application tool bar or click the new icon, for an ad hoc revaluation of a particular contract.

   Contract Interest Rates Maintenance screen is displayed.

5. Note:

   The interest rate(s) that entered is used to determine the Fair Value for revaluing that particular contract.

   Select the reference number of the contract which is to be 4-23 revalued after indicating the new revaluation date of the contract, you can specify the new interest rate for the interest period.