1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Rules
  5. Defining Transfer Pricing Methodologies
  6. Defining Terms for Add-On Rate Calculations

5.3.4.5.2 Defining Terms for Add-On Rate Calculations

To define the terms for Add-On Rate calculations:

Add-On Rate Term Selector: Select the check-box against Rule Need to be considered for Add-On Rate Calculations. This selection enables to select Standard or Original terms for the Term to calculate the Add-On Rate Term.

  • Standard Term: The cash flows will be generated as the normal case. That is , original term for fixed rate records and from last re-price date to next re-price date for adjustable rate instruments.
  • Original Term: All the cash flows generated to calculate TP rate will be from origination date to maturity date. That is treating all the instruments as fixed rate instruments.