Interest Calculations

Rounding, allocations and interest calculations:

1. DebtBook adheres to industry-standard fixed income securities calculations when producing debt service schedules. Interest is truncated to three decimal places and rounded to two decimal places immediately prior to presentation of total interest amount.

2. Values shown in total columns sum the already rounded values as they are displayed above and do not incorporate any decimals not shown in the table. Export the data to excel to see the actual value without any rounding applied.

3. When splitting loans and allocating by fund or purpose, we split the principal amounts based on information provided and round to two decimals. We then calculate the interest amount due to each allocation using the resulting split amortization schedule.

Standard of Accuracy; Truncation

Intermediate Values. All values used in computations of accrued interest, yield, and dollar price will be computed to at least ten decimal places.

Results of Computations. Computation results are presented in accordance with the following:

(A) Accrued interest is truncated to three decimal place and rounded to two decimal places immediately prior to presentation of total accrued interest amount on the confirmation;

(B) Dollar prices are truncated to three decimal places immediately prior to presentation of dollar price on the confirmation and computation of extended principal; and

(C) Yields are truncated to four decimal places, and rounded to three decimal places; provided, however, that for purposes of confirmation display as required under Rule G-15 (a)(viii)(B), yields accurate to the nearest .05 percentage points are deemed satisfactory.

Numbers are rounded, where required, in the following manner: if the last digit after truncation is five or above, the preceding digit is increased to the next highest number, and the last digit is discarded.

Interest Calculations - Simplified

The Rule: Interest calculations are truncated to three decimals and then rounded to two decimals, per generally accepted securities calculation standards.

The Example: 467,775.00 * 3.50% = 16,372.125

The Result: The result is rounded to 16,372.13

Source:

Mayle, Jan (1993), Standard Securities Calculation Methods: Fixed Income Securities Formulas for Price, Yield and Accrued Interest, 1 (3rd ed.), SIFMA.

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