Patent ID: 7249075

Claim:
A computer-based method for administering financial instruments, comprising: executing a processing program loaded on a computer, the processing program configured to establish a trust with trust units, each trust unit representing an interest in a bond having a maturity date and one or more equity security shares, the one or more equity security shares defining a share ratio; and periodically performing the following steps by accessing, via one of the computer and a second computer, information stored in a database, the information in the database comprising at least trust information and equity security information, to enable the one of the computer and a second computer to: (a) computing price of the trust units based on the share ratio for a period and current values of the bond and the one or more equity security shares; (b) determining a predetermined threshold price based on a par value of the trust units at maturity; (c) comparing the price of the trust units to the predetermined threshold price; (d) determining a distribution to holders of the trust units based on the comparison, the distribution including cash payments that are paid in cash and based on share dividends of the equity security shares of the trust units and performance payments that are paid in a number of equity security shares and based on underlying asset appreciation; and (e) adjusting the share ratio of the trust units to reflect the distribution.