Bond Yield Election Analysis for Variable Rate Issues
If the a variable rate bond issue has generated a positive rebate amount using the composite bond yield, it may be possible to recompute the Rebate Amount using alternate yield periods which may reduce the rebate liability. However, the alternate yield period methodology could increase the rebate liability, in which case, the composite yield computation would be used to determine the Rebate Amount. Pinnacle’s customized software performs the calculations necessary to determine the optimal yield period(s) that will result in the lowest rebate amount to be paid.