8.6.3.7 Assignment Method – Leg 2

This option determines how the secondary assumption value is allocated to time buckets. Secondary assumption value refers to the off-set value which can be selected in addition to the primary assumption value. Assignment methods determine the manner in which the primary assumption values are assigned to multiple buckets in order to determine the cash flows. Leg 2 is applicable when only two legs of the transaction are affected i.e. when the assumption legs field value is selected as Two. Secondary assumption value is the off-set value specified by you in addition to the primary assumption value, and is applicable only when assumption leg is selected as Two. This is applicable only when assumption legs are selected as Two.

The options are as follows:

• Selected Time Bucket
• Increasing
• Decreasing
• Equal
• Proportionate

The detailed calculations pertaining to each assignment method are explained in section Assignment Method – Leg 1.