Call/Put Schedule

Field Name

Required?

Field Description

Line Number

System Set

Each Call/Put Option record is identified by a system-assigned number starting with 1.

Call/Put Indicator

Required

Each option defined must be classified as either a Call option or a Put option.

• Call – This value should be used when the issuer wants the option to redeem or “call” specific bonds prior to the stated maturity date. A call schedule is created with a list of the dates that a bond can be called, together with the corresponding price for each call date.

• Put – This value should be used when the bondholder wants to cash in their bond early. A put schedule is created with a list of the dates that a bond can be cashed in and the corresponding price for each put date.

Call/Put Date

Required

Each option has date for which the option can occur.

• If the Call/Put Indicator is Call, then this field indicates the date that the issuer can redeem or “call” the selected bond.

• If the Call/Put Indicator is Put, then this field indicates the date that the bondholder can cash in the selected bond.

Notice Start Date

Optional

The date to record when notice has to be given about the option.

Call/Put Price

Required

The price for each bond in a call or put option that has to be an amount greater than $0.00. The price is used in the calculation of both the Premium/Discount field and the Yield to Call/Put.

Premium/Discount

System Set

The transaction calculates the difference between the Denomination defined for the Debt Instrument and the Call/Put Price defined for the call or put option. When the Call/Put Price is greater than the Denomination, there is a premium and the Discount/Premium amount will be a positive dollar amount. In the very rare event that Call/Put Price is less than the Denomination, the calculated amount will be negative, indicating what is really a Discount.

Yield to Call/Put

System Set

This yield is a percentage rate that will make the present value of the bond's cash flows up to the Call/Put Date equal to today's selling price. The method for calculating this yield is the same as the Yield to Maturity rate (YTM) with the following slight changes (please see the "Calculate YTM" topic for more details on the calculations):

• The Call/Put Date is used instead of the Maturity Date. The calculation will select all compounding and payment Schedule Details up through that Call/Put Date.

• The principal due at maturity is not the stated Principal but is the Call/Put Price multiplied by the Number of Bonds Issued.

A warning message is issued if there is not enough information to calculate the Yield to Call/Put. The following fields cannot be blank or zero: Call/Put Price, Start Date, Call/Put Date, Frequency, and either the Interest Rate or Fixed Interest Payment Amount, or the action finds there are no schedule lines from which to calculate.

The yield is calculated by validate and submit transaction actions when there is enough information and the yield is blank. Keep this in mind if you calculate and then change one or more parameters.

Call/Put Description

Optional

A short description field to log any information needed for the option.

Call/Put Extended Description

Optional

A long description field to log any information needed for the option.