The payment schedule of financial instruments

Financial instruments

A financial instrument is a tradable asset of any kind, either cash; evidence of an ownership interest in an entity; or a contractual right to receive, or deliver, cash or another financial instrument....

 defines the dates at which payments are made by one party to another on for example a bond

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 or derivative

Derivative (finance)

A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...

. It can be either customised or parameterised.

Parameterised Schedule

The schedule is generated based on a set of rules and market conventions to define the frequencies of the payments.

These parameters include:

• Payment Frequency (Annually, Semi Annually, Quarterly, Monthly, Weekly, Daily, Continuous)
• Payment Day - Day of the month the payment is made
• Date rolling
  Date rolling
  In finance, date rolling occurs when a payment day or date used to calculate accrued interest falls on a holiday, according to a given business calendar. In this case the date is moved forward or backward in time such that it falls in a business day, according with the same business calendar.The...
  
   - Rule used to adjust the payment date if the schedule date is not a Business Day
  Business Day
  Business Day can refer to:*Business day, a period of time*Business Day *Business Day *Business Day...
  
  
• Start Date - Date of the first Payment
• End Date - Also known as the Maturity date. The date of the last payment

Customised Schedule

The schedule consists of a series of dates that define exactly when payments will be made.