## Spreads 1

Key

**in IRS refers to an optional constant rate**

*Spreads 1***that must be added to the product of the appropriate gearing from Gearings 1 and the applicable fixing of the index defined in Index 1 in order to produce the final rate used in calculating the floating cash flow amount.**

*s*If no index is defined in Index 1, i.e. if the leg is fixed, the rate here is interpreted as the leg's fixed rate.

If omitted, a flat value of 0 is assumed.

Several values may be also entered here in the form of a 1D-array

If

**values are provided, then the first**

*n***cash flows are paired with the provided**

*n***values in successive order.**

*n*If any cash flows are left over, they will use the last value.

Look at IRS for the exact mathematical formula.