Hi
Sorry for late reply on your suggestions. It will work if the interest is being calculated on one maturity. It may not work if we have multiple maturities with different interest rates. Let me explain with our old example:
1st installment - 1/1/2014 to 01/01/2015 for $25m @ 5% interest
2nd installment - 1/1/2014 to 01/01/2016 for $35m @4% interest
3rd installment - 1/1/2014 to 01/01/2017 for $40m @4.5% interest
Let us say the first interest due date is 7/1/2014 and you will pay $2.225M as calculated below:
Interest on 1st installment (1/1/14 to 7/1/2014) @ 5% on $25m for 6 months - 0.625M
Interest on 2nd installment (1/1/14 to 7/1/2014) @4% on $35m for 6 months - 0.700M
Interest on 3rd installment (1/1/14 to 7/1/2014) @4.5% on $40m for 6 months - 0.900 M
I am not sure how we show all these 3 interest calculations against one total interest amount?
Could you please suggest me?
Thanks and Regards
Ashok