Examples of Interest Multiplier in a sentence
Depending on the other variables applicable to the Notes, in particular whether there is a negative Interest Multiplier, a Scaling Factor may or may not be detrimental to Noteholders’ interests.If any Interest Amount or Redemption Amount is based on the positive performance (requiring an increase in value) of the Reference Item during the relevant Interest Period or the term of the Notes, the application of a Scaling Factor of less than 100 per cent.
Account Interest Multiplier is applied after interest credit or index credit is determined and before any Interest Bonus.
Even if the relevant value for Rate1 does not exceed the Variance Hurdle, the value of such shortfall must be greater than any positive Margin for an Interest Amount to be payable.Subject to the relevant Interest Multiplier and Margin, the relevant performance of the rates shall affect the amount of interest, if any, payable to Noteholders.
Otherwise, the pay-out operates identically.Floating Rate Notes also differ when applying an Asian Option Interest Variable Option, such that the Interest Amount is solely based on the Latest Average Value, plus or minus the Margin (if any), with the result being multiplied by the applicable Interest Multiplier (see risk factor 8.3).
Even if the relevant value for Rate1 does exceed the Variance Hurdle, such excess must be greater than any negative Margin for an Interest Amount to be payable.Conversely, where the Interest Multiplier is negative, if the relevant value for Rate1 exceeds the relevant Variance Hurdle, no Interest Amount will be payable in respect of such Interest Period unless the excess is greater than any negative Margin applicable to the Notes.
Index Linked Interest Notes with an Interest Variable Option specified as Single Fixing – Index or Asian Fixing – Index will bear interest depending on the value or average value of the relevant Index that is determined for a particular Interest Period.If the Interest Multiplier is positive and such value or average value, when divided by the specified Denominator, is less than any negative Margin, no Interest Amount will be payable.
Where any one or more of an Interest Multiplier, Autocall Multiplier, Index Redemption Multiplier, Equity Redemption Multiplier or Currency Redemption Multiplier (each, a “Multiplier”) applies to the Notes, their market value may be even more volatile than for Notes that do not include such feature(s).The Multiplier will determine the level of exposure of the investor to the Reference Item and will be specified as a percentage.
Otherwise, the pay-out operates identically.Where the Interest Multiplier is positive, if such Latest Value (or, in respect of Currency Linked Interest Notes, the Previous Value) does not exceed the relevant Evolution Hurdle Value, no Interest Amount will be payable in respect of such Interest Period unless the shortfall when presented as a percentage against the Previous Value (or, in respect of Currency Linked Interest Notes, the Latest Value) is less than any positive Margin applicable to the Notes.
If the Interest Multiplier is negative and such value or average value, when divided by the specified Denominator, is greater than any negative Margin, no Interest Amount will be payable.Subject to the relevant Interest Multiplier, Margin and Denominator, the performance of the relevant Index shall affect the amount of interest, if any, payable to Noteholders.
If “ISDA Determination” is applicable, the Variable Rate of Interest to be applied will be based on the relevant ISDA Rate, plus or minus the Margin (if any), after application of the Interest Multiplier (if any) to the resulting amount (see risk factor 8.3 below).