19.2.8.2 Redemption Processing based on Quotation Type

If the redemption quotation type is ‘Factor’, then the redemption amount due for the intermediate redemption schedules will be calculated as follows: Redemption Amt = Holdings * (Redemption factor of previous period – Redemption factor of the current period) If the redemption quotation type is ‘Cash flow’, then the redemption amount due for the intermediate redemption schedules will be calculated as follows: Redemption Amt = Holdings * (Redemption price/Initial FV) For final redemption, the remaining holdings are redeemed. On running the YTM recalculation batch, the system recalculates the price of the redemption schedules based on the current coupon rate in case of coupon rate revision.

Note:

Batch processing is applicable only for securities under ‘Cash flow’ type of redemption quotation. Recalculation is done only for the redemption schedules on or after the current coupon period.