Pool factor

The factor at which a bond would be amortized when paid in regular rates

The pool factor is calculated against the nominal value. It starts at 1 and moves successively towards 0, i.e., 1 x 100, 0.9 x 100 and so on. Another possibility for rated amortization is to subtract a certain percentage at fixed intervals, e.g., 10 percent from 100, then 10 percent from 90 and so on.

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