Patent ID: 7236952

Claim:
A method for valuing financial securities, respective endogenous variables of a financial security, said variables comprising Cash receipts (C), Yield (Y) and Time (T), comprising steps of: utilizing a universal pricing function, said pricing function comprising: P=f {C, Y, T} where C, Y, and T are variables endogenous to the security P=Market Price; de facto, empirical or expected market price C=Cash Receipts; coupon, dividend, premium payments, principal/par Y=Yield; a single term relating security's return, relative to P, C, T T=Time; a fixed, expected or continuous measure of said security's life; determining values of said endogenous variables, respective said security's price, by: determining a singular yield value for said security or for a basket of securities, utilizing Formula, Yield M, or Yield Md, said Formulae comprising: Yield ⁢ ⁢ M = ∑ ( Maturity × Portfolio ⁢ ⁢ Coefficient × Yield ⁢ - ⁢ To ⁢ - ⁢ Maturity ) , ⁢ for ⁢ ⁢ all ⁢ ⁢ issues ∑ ( Maturity × Portfolio ⁢ ⁢ Coefficient ) , ⁢ for ⁢ ⁢ all ⁢ ⁢ issues Yield ⁢ ⁢ M ⁢ ⁢ d = ∑ ( Duration × Portfolio ⁢ ⁢ Coefficient × Yield ⁢ - ⁢ To ⁢ - ⁢ Maturity ) , ⁢ for ⁢ ⁢ all ⁢ ⁢ issues ∑ ( Duration × Portfolio ⁢ ⁢ Coefficient ) , ⁢ for ⁢ ⁢ all ⁢ ⁢ issues where Issue=Security; All Issues=Securities comprising a basket of securities Yield M or Yield Md=Governing Yield=Y Maturity=Time=Maturity in Years, Expected Life, Term of Policy Portfolio Coefficient=Present Value, per issue/Present Value, Σ issues Present Value=Cost to Presently Purchase YTM=Yield-To-Maturity, a means providing yield respective time, where for Single Issue: Portfolio Coefficient is one, Yield M=YTM for Portfolio: said formula creating a single Yield M value of all issues; solving said security's price using said values of said endogenous variables, or solving third endogenous variable utilizing said security's price and two of three endogenous variables.