1.2.9 BEP and Premium\ Discount Accrual

This topic describes about BEP and premium\ discount accrual.

The handling of BEP ,premium, and discount accrual in the target security during a securities conversion involves proportionate adjustments based on the conversion ratio and nominal values.

• Premium and Discount Accrual:

  The premium and discount accruals on the source security are appropriately proportioned and transferred to the target security.

• BEP:

  System takes the closing BEP of the source as the input price for the Sell deal and splits this BEP in the split ratio for the buy deal