| US 7,590,590 B2 | ||
| Method and system for exchangeable bundled option and no-principal debt securities | ||
| Santosh Sreenivasan, New York, N.Y. (US); Jeffrey J. Zajkowski, Short Hills, N.J. (US); Christopher Bishko, New York, N.Y. (US); and James A. Rothschild, New York, N.Y. (US) | ||
| Assigned to JPMorgan Chase Bank, New York, N.Y. (US) | ||
| Filed on Jun. 28, 2005, as Appl. No. 11/168,679. | ||
| Prior Publication US 2006/0293986 A1, Dec. 28, 2006 | ||
| Int. Cl. G06Q 40/00 (2006.01) | ||
| U.S. Cl. 705—37 [705/36 T] | 17 Claims |
| 1. A method implemented at least partially in a programmed computer for raising funds, the method comprising:
issuing a bond using the programmed computer, wherein the bond comprises:
a first component, corresponding to interest due on the bond, that pays a periodic interest payment during a first predetermined
period of time until a maturity date of the first component without payment of any principal; and
a second component, corresponding to principal due on the bond, allowing a holder of the second component to elect conversion
and thereby receive shares of a company or a cash equivalent as part of the second component, the first and second components
issued together in an initial issue of the bond, wherein after the initial issue, the bond allows separation of the first
component from the second component and individual transfer of the first component and the second component, and further wherein
a conversion of the second component to shares or cash equivalent does not alter the periodic interest coupon payments of
the first component;
paying the periodic interest payment using the programmed computer; and
automatically determining whether the second component has been exercised.
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