The Rate Change Event allows you to add or insert an interest rate change at any point in the schedule. When you select the Rate Change Event, the cash flow table enables the Compounding and Rate columns. The Date field for a Rate Change Event will default to the last date of the preceding cash flow line. You can edit this date.
To enter a Rate Change Event
- From the Event field on a cash flow line, select Rate Change from the drop-down list.
- From the Compounding field, press the first letter of the period name or click the Compounding field to display a list of compound periods to choose from. The new compound period selected will be in effect from the Date of the Rate Change and will not affect the cash flow lines that occur before it.
- Enter the new interest rate in the Rate field of the cash flow line. To view or enter the Nominal Annual, Effective Annual, Periodic, or Daily Rates, click the expansion adorner
in the bottom right of the field.
To enter a Rate Change without Compounding
- From the Compounding field on a Rate Change cash flow line, choose None from the drop-down list.
A Rate Change Event will not affect the interest rate of the cash flow lines with dates prior to the Date of the Rate Change. The new rate (and rate change compounding) will take effect on the Date of the Rate Change cash flow line.
Example screenshots
Cash Flow Matrix
Amortization Schedule Report
