SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Treasury C_S4FTR_2023 Question # 3 Topic 1 Discussion
C_S4FTR_2023 Exam Topic 1 Question 3 Discussion:
Question #: 3
Topic #: 1
You want to use the SOFR risk-free rate (RFR).For which product categories can parallel interest conditions be activated?Note: There are 2 correct answers to this question.
The product categories that can activate parallel interest conditions for using the SOFR risk-free rate (RFR) are 040 - Bonds and 550 - Interest Rate Instrument. SOFR is one of the alternative risk-free rates (RFRs) that are replacing LIBOR as a benchmark interest rate for financial transactions. Parallel interest conditions are interest conditions that use different interest calculation methods or interest rates for the same financial transaction. You can activate parallel interest conditions for product categories 040 - Bonds and 550 - Interest Rate Instrument by using parallel shifts of yield curves or lookback interest calculation methods.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
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