Patent ID: 8429042

Claim:
A computer-implemented method comprising: structuring a security to include a convertible note, wherein the convertible note is convertible into a fixed number of shares of common stock of an issuer, the convertible note has associated therewith a maturity and the convertible note pays interest; determining, via a computer, if a present time is within a first time span following issuance of the note; calculating, via the computer, if the present time is within the first time span, a value of a fixed rate first stage interest payment; determining, via the computer, if a present time is within a second time span following the first time span; calculating, via the computer, if the present time is within the second time span, a value of a variable rate second stage interest payment, wherein calculation of the value of the variable rate second stage interest payment is based upon an economically reasonable analysis in light of market conditions so that a conversion of the note by a holder of the note does not occur at the time the value is calculated; and determining, via the computer, whether a price of a share of common stock of the issuer is less than a predetermined threshold percentage of a conversion price associated with the note so that the note is not convertible if the price of the share of the common stock of the issuer is less than the predetermined threshold percentage of the conversion price associated with the note.