Patent ID: 7987129

Claim:
A financial instrument system comprising: a memory storing financial instrument data associated with a financial instrument issued by a stock company and held by a holder, shares of stock of the company trading at a price, the instrument having a market price; and a processor in communication with the memory and operable to: calculate a repayment obligation according to a provision of the instrument obligating the company to repay the principal according to a predetermined term; calculate a stock conversion according to a provision of the instrument making the instrument convertible into a predetermined number of shares of stock of the company at a predetermined conversion price; calculate a payment obligation according to a provision of the instrument obligating the company to make a payment to the holder with respect to passage of a time interval in the event the market price of the instrument is in a predetermined relationship to an accreted value thereof, the accreted value as the issue price of the instrument plus an economic accrual of a portion of a difference between the issue price and the principal amount at maturity.