Bluetick1010

C3Po Wrote:
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> Anish,
>
> Not sure if I understand your question correctly
> but here is my explanation.
> Lets say you take a mortgage out on 1st June. Your
> first payment is due on 1st July. If you
> consider the date June 1st as T=0 then your
> mortgage payment is due @T=1. Therefore your
> calculation will be based on "end" mode and
> interest will be paid for the 1st month and not as
> you indicated like a cap lease. Hope this helps.


Right. It makes sense. Thanks C3Po