Assumption The yield is in the form of a fixed interest rate which will increase in respect to each of the payout period (Fixed Rate Step Up).
Principal Amount USD 10,000.00 Tenor one (1) year Payout Date semi-annually Day Count Fraction 182 / 365 In respect of each of the 1st Payout Periods 1.50% per annum In respect of each of the 2nd Payout Periods 1.70% per annum
Scenario 1 (Best Scenario) Payout Amount on Payout Period based on 1st Payout Rate
= Principal Amount × Payout Rate × Day Count Fraction
= USD 10,000.00 × 1.50% p.a. × 182/365
= USD 74.79 (Gross) = USD 59.82 (Net)
Payout Amount on Payout Period based on 2nd Payout Rate
= Principal Amount × Payout Rate × Day Count Fraction
= USD 10,000.00 × 1.70% p.a. × 182/365
= USD 84.77 (Gross) = USD 67.82 (Net)
On Maturity Date, the Customer will receive Principal Amount USD 10,000.00
Scenario 2 (Worst Scenario) If the Customer requests for an early withdrawal of the IRLI in accordance with the early withdrawal requirements and the Bank agrees to the Customer's request, the Customer will receive an early withdrawal amount determined by the Bank. Such early withdrawal amount will usually be substantially less than 100% of the Principal Amount and in the worst-case scenario, such early withdrawal amount is zero. The Customer will not receive any quarterly payout following such early withdrawal.