Net Present Value (NPV) of Cash Flows for Modification Gain or Loss

Net Present Value (NPV) of Current Date Cash Flows is determined for both Fixed and Floating rate accounts. Then the Cash Flows are discounted using the EIR to compute the NPV. This Net Present Value of Cash Flows is used to compute Modification Gain / Loss. For more information about Modification Gain or Loss, see the Modification Gain or Loss section.