The two files below address deals with complex issues associated with computing the LLCR with changing interest rates and multiple debt issues with different interest rates. If there are multiple issues, the LLCR can be accumulated for the shortest tenor of the debt. For longer tenor issues, the LLCR can be evaluated by computing forward debt IRR with a user defined function.
The files below address issues assocated with reserve accounts, The DSRA account includes detail of how to compute debt service accounts and the DSRA account. Exercise 7 covers a number of issues assoicated with modelling DSRA’s ranging from structuring the DSRA requirements to dealing with cash sweeps, sculpting and cash flow waterfalls. The exercise demonstrates that there should be no circular references associated with the DSRA. Exercise five deals with the issue of computing contributions to a maintenance reserve for extraodinary expenditures. The calculations are a little complicated where the amount of expenditures is not constant and the time between periods of expenditures chages over time. This exercise walks through how to program switch variables for the expenditures and how to compute the prospective expenditure so that the amount of contribution to the MRA can be established.