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Calculation of Effective Interest Rate for SAC Net

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Hi!

 

How is the effective interest rate used for amortization of premium and discount calculated?  I'm using the SAC Net method.  And how is the amortization per key date calculated after arriving at a fix Effective Interest Rate? I noticed that the calculated EIR is the same for fix and variable interest condition.

 

Thanks,

Chaikaru

 

Edited by: chaikaru on Nov 3, 2009 10:09 AM


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