Extend Constant Annuity beyond the Transaction End Date
The amortization can be computed with constant annuities for the following transaction types in Fairways Debt: standard loans, subsidy loans and bond. It is now possible to compute these constant annuities as if they were extended beyond the transaction end date. This type of transaction is sometimes referred to as "balloon loans".
The new amortization type Extended Constant Annuity is available on the transaction creation form to specify constant annuity extension.
As for constant annuities, the extended constant annuities can only be set on transactions using a fixed rate.
See Create a Standard Loan, Create a Subsidy Loan and Create a Bond for more details.
Compute Equivalent Periodic Compounding Rate
It is now possible to specify an equivalent compounding rate for standard loans and credit facility drawings in Fairways Debt. This rate is equivalent to the interest rate entered for the transaction but paid with a different frequency, with compound interests.
The new option Equivalent Compounding Rate is available on the transaction creation form to specify this rate.
The equivalent compounding rate can only be set on transactions using a fixed rate.
See Create a Standard Loan and Create a Drawing in a Credit Facility for more details.
The following new indicators are available for spot reports:
- Indexation / Annual Capitalization Frequency
- Indexation / Compound Effective Rate
- Indexation / Period Equivalent Rate