Patent ID: 7222094

Claim:
A method for conducting a transaction, comprising: setting an initial yield for an obligation issued by an issuer and held by a holder, wherein the initial yield is applied to the obligation for an initial time period; setting a current yield for the obligation, wherein the current yield is applied to the obligation after the initial time period has elapsed, and wherein the current yield is set equal to one of a first reset yield and a second reset yield, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation; and performing at least one of the steps selected from the following group: (a) paying, to the holder of the obligation, interest equal to at least one of: (i) the initial yield applied to the obligation for the initial time period; and (ii) the current yield applied to the obligation after the initial time period has elapsed; and (b) converting the obligation into the stock according to a conversion formula.