Call/Put Schedule

The Call/Put Schedule section, found only on the bond documents, allows you to record any call or put options available for a bond issue.  

• You can enter a call schedule that includes the dates that a bond can be called by the issuer of the bond and the corresponding price for each call date.

• You can enter a put schedule that includes the dates that a bondholder can cash in their bond early, with a price for each.

The Call/Put Schedule section of the bond documents contains the following tab:

• General Information

  

  

  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 requires a 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	An optional date to record when notice has to be given about the option.
  Call/Put Price	Required	A required 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 document 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 section 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 document 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.