Step 1: In the Counterparty menu, type in the Counterparty with whom you are creating the custom FRN. You can also click from the list if a counterparty entry already exists.
Step 2: In the Seniority Level menu, click the appropriate Seniority Level, or payment order of the note.
Step 3: In the Instrument Name text box, type the name of your custom bond. This is a required command.
Step 4: In the Notional Amount text box, type the predetermined dollar amount of the FRN, then click the appropriate currency.
Step 5: In the Maturity date box, click the down arrow, then click the maturity date, or when the FRN finishes and is paid off. You can also type in the date in the format of Jan 1, 2000. This is a required command.
Step 6: In the Issue date box, click the down arrow, then click the date. You can also type in the date in the format of Jan 1, 2000. This is a required command.
Step 7: In the Payment Frequency menu, click the appropriate time period between payments made to the noteholder. This is a required command.
Step 8: In the Reference Index menu, click the appropriate index. This is a required command.
Step 9: In the Spread Over Reference text box, type the percentage paid above the applicable benchmark yield. This is a required command.
Step 10: In the Compounding Frequency menu, click the appropriate frequency applied to the payments. This is a required command.
Step 11: In the Daycount Convention menu, click the appropriate convention used in the payment schedule. The available conventions and corresponding currencies are: Actual/365 HKD, MYR, THB, SGD Actual/360 AUD, CAD, NLG, EUR, FRF, DEM, ITL, PHP, ESP, SEK,CHF, GBP, JPY, USD. This is a required command.
Step 12: In the Last Regular Coupon Date menu, click through the online calendar to set the date of the Last Regular Coupon Date that is not an odd coupon.
Step 13: In the Last Reset Rate menu, type the rate as indicated by the corresponding Reference Index (as defined in Step 8). The text box automatically extends your entry to six decimal places. This is a required command.
Step 14: In the Business Day Rule menu, click the rule being applied to the FRN. This is a required command.
Step 15: In the Holiday Locale menu, click the hoiday locale or regional banking calendar being observed for this instrument. For example, calEUR for the European Calendar. This is a required command.
Step 16: In the Discount Curve menu, click the appropriate curve, selecting interbank or treasury for the desired currency. This is a required command.
Step 17: In the Odd First Coupon menu, click Regular if the coupon payment periods fall naturally on both the issue and maturity dates. Click Long to indicate the odd coupon is added to the first regular coupon if backward schedule generation results in a first payment period shorter than normal coupon frequency. Click Short if it is a separate, first odd coupon.
Step 18: In the Odd First Coupon menu, click Regular if the coupon payment periods fall naturally on both the issue and maturity dates. Click Long to indicate the odd coupon is added to the last regular coupon if forward schedule generation results in a last payment period shorter than normal coupon frequency. Click Short if it is a separate, last odd coupon.
Step 19: In the Schedule Generation menu, click to specify whether the coupon payment frequency is calculated from the maturity date backward or issue date forward. This is a required command.