Method For Structuring An Obligation

Abstract

A method for structuring an obligation. More particularly, a method for structuring an interest-bearing obligation which is convertible into stock.

1 - 17 . (canceled) 
     
     
         18 . A computer-automated method for conducting a transaction, comprising:
 setting a maturity date for an obligation issued by an issuer via a computer-automated system;   setting an initial yield for the obligation, wherein the initial yield is applied to the obligation for an initial time period;   setting a current yield for the obligation equivalent to one of a first reset yield and a second reset yield, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation;   applying the current yield to the obligation after the initial time period has elapsed;   converting the obligation into the stock according to a conversion formula; and   making at least one payment based on the current yield;   wherein the current yield is set essentially continuously on a real-time basis.   
     
     
         19 . The method of  claim 18 , wherein the first reset yield equals a rate that would result in a trading price of par of a hypothetical issue of a debt security of a reset rate target entity, wherein the terms of the hypothetical issue of the debt security include: (i) a predetermined maturity; and (ii) an aggregate principal amount substantially equal to an accreted principal amount of the obligation. 
     
     
         20 . The method of  claim 18 , wherein each of the initial time period, the initial yield, the first reset yield, and the second reset yield equals a value selected from the group consisting of: a) a value set by the time of issuance of the obligation; and b) a value set after the time of issuance of the obligation. 
     
     
         21 . The method of  claim 18 , wherein at least one of the initial time period, the initial yield, the first reset yield, and the second reset yield has at least one of an upper limit and a lower limit. 
     
     
         22 . The method of  claim 18 , wherein at least one of the initial time period, the initial yield, the first reset yield, and the second reset yield has a value which depends upon a sliding scale. 
     
     
         23 . The method of  claim 22 , further comprising permitting the issuer to truncate the maturity date. 
     
     
         24 . The method of  claim 22 , wherein the sliding scale is set by the time of the issuance of the obligation. 
     
     
         25 . The method of  claim 22 , wherein the sliding scale changes over time. 
     
     
         26 . The method of  claim 18 , wherein the second reset yield equals the initial yield. 
     
     
         27 . The method of  claim 18 , further comprising setting at least one of an issue price and a nominal maturity value for the obligation. 
     
     
         28 . A computer-automated method for conducting a transaction, comprising:
 setting a maturity date for an obligation issued by an issuer via a computer-automated system;   setting an initial accretion rate for the obligation, wherein the initial accretion rate is applied to the obligation for an initial time period;   setting a current accretion for the obligation equivalent to one of a first reset accretion rate and a second reset accretion rate, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation;   applying the current accretion to the obligation after the initial time period has elapsed;   converting the obligation into the stock according to a conversion formula;   permitting the issuer to redeem the obligation according to a redemption formula;   permitting a holder of the obligation to require the issuer to re-purchase the obligation according to a re-purchase formula; and   making at least one payment based on the current accretion rate;   wherein the current accretion rate is set essentially continuously on a real-time basis.   
     
     
         29 . The method of  claim 28 , further comprising setting at least one of an issue price and a nominal maturity value for the obligation. 
     
     
         30 . The method of  claim 29 , further comprising permitting the issuer to truncate the maturity date. 
     
     
         31 . The method of  claim 28 , wherein the second reset yield equals the initial yield. 
     
     
         32 . The method of  claim 28 , further comprising setting at least one of an issue price and a nominal maturity value for the obligation. 
     
     
         33 . A computer-automated method for conducting a transaction, comprising:
 setting a maturity date for an obligation issued by an issuer via a computer-automated system;   setting an initial yield for the obligation, wherein the initial yield is applied to the obligation for an initial time period;   setting a current yield for the obligation equivalent to one of a first reset yield and a second reset yield, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation;   applying the current yield to the obligation after the initial time period has elapsed;   converting the obligation into the stock according to a conversion formula; and   making at least one payment based on the current yield;   wherein the current yield is set essentially continuously on a real-time basis;   wherein at least one of the initial time period, the initial yield, the first reset yield, and the second reset yield has a value which depends upon a sliding scale.   
     
     
         34 . The method of  claim 33 , further comprising permitting the issuer to truncate the maturity date. 
     
     
         35 . The method of  claim 34 , wherein the second reset yield equals the initial yield. 
     
     
         36 . The method of  claim 34 , further comprising setting at least one of an issue price and a nominal maturity value for the obligation.