Schedule Change for Variable Rate Bond

The nature of a Variable Rate Bond is that over the life of the bond issue there are conditions that cause the percentage rate to change. When this happens, the BONDM transaction is used to ‘end’ the current Schedule and Schedule Details while also creating a new Schedule and Schedule Details with the new rate.

To create a Bond Modification (BONDM) transaction in order to make the variable rate change, perform these steps:

  1. Navigate to the Bond Registry (BOND) and search for the Variable Rate Bond Issue. When found, take the Modify action.

  2. Complete the Create Transaction screen.

  3. Navigate to the Schedule tab where a row will already be inserted with your information and do the following on the existing record:

  4. Selected Schedule: false

  1. Copy that record to create a new record and make the following updates:

  2. Interest Rate: (the new annual rate paid on the issue)

  3. Take the Generate Schedule action

  1. Validate the transaction.

  2. If errors exist, fix the errors and repeat Step 5. If no errors exist, continue with Step 7.

  3. Submit the transaction.