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Rate Multiplier

Rate Multiplier

Acronym: RRMLT
Identifier: rateMultiplier
Group: Rate Reset
Type: Real
Default: 1

Description

Interest rate multiplier. A typical rate resetting rule is LIBOR plus x basis point where x represents the interest rate spread. However, in some cases like reverse or super floater contracts an additional rate multiplier applies. In this case, the new rate is determined as: IPNR after rate reset = Rate selected from the market object * RRMLT + RRSP.