 Option D |
4!c |
(Type) |
Mandatory in conditional (see rules C17 and C18) subsequence C2
This field specifies how the interest is compounded.
For an ISDA Master (Type in field 77H is ISDA), this field specifies the type (flat/straight) as per ISDA definitions.
Type must contain one of the following codes (Error code(s): T71):
| FLAT |
Flat compounding is applicable |
| STRT |
Straight compounding, that is, spread included |
The absence of this field means that the swap is not compounded.
For a Straight Compounding contract, the spread is included in the interest rate; for a Flat Compounding contract, the interest amounts are the sum of the amount calculated by using the basic rate and the amount calculated by using the spread.
