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FTP - Wrong Transfer Rate From ZCDF Method When 'Next Reprice Date' = 'Teaser End Date' (Doc ID 2639735.1)

Last updated on JULY 24, 2023

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications Infrastructure (OFSAAI)
Oracle Financial Services Funds Transfer Pricing (FTP)
Oracle Financial Services Analytical Applications (OFSAA)
ZCDF Method - Zero CashFlow Discount Factor Method


On FTP Wrong Transfer rate from ZCDF Method when Next Reprice Date = Teaser End Date

It have observed an issue with Cash flow Zero discount factor method. While processing an adjustable type record with repricing frequency as 365 Days, the record has got a teaser end date as well which happens to be the same as Next Reprice date.
With this input data, the system is outputting a transfer rate = 99.595457% with the teaser end date as 16-AUG-2019.

Even though the teaser end date was set as 01-JAN-1900, the system is outputting 2.24612% which is correct and can be validated as well. The system, when the teaser end date is provided as any valid date, is considering the ending balance on the teaser end date / next reprice date, due to which, transfer rate is shooting up and coming as 99.595457%

The computation and data attributes are being attached for reference and validation >> Input Data (click for download)




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