4.4.7 Cascade Schedules

The question of cascading schedules arises only if:

• You have specified that a schedule falling due on holiday has to be moved forward or backwards; and
• The schedule has been defined with a definite frequency
• If you have indicated that schedules should be cascaded, the scheduled date for the next payable schedule will depend on how the scheduled date was moved for a holiday. The following example illustrates how this concept of cascading schedules functions:
• When you cascade schedules, the last schedule (at maturity), however, will be liquidated on the original maturity date and will not be changed like the interim schedules. Hence, for this particular schedule, the interest calculation days may vary from those of previous schedules.