Patent ID: 7805350

Claim:
A method of valuing at least one bond having a nominal lifetime with respect to a maturity date, said at least one bond having an estate put, said at least one bond further having a cash flow value, said method comprising the computer-implemented steps of: providing a computer, said computer having a central processing unit and a computer code operatively associated with said central processing unit which when implemented causes a series of actions; using said computer to divide said at least one bond into a plurality of pieces, each piece having the same maturity as the bond but having an estate put exercise date in a different year than that of any other piece in said plurality; using said computer to value said estate put and cash flow of each said piece based on the exercisability of said estate put as determined by the expected mortality rate applicable to said piece's estate put exercise date; and using said computer to aggregate said estate put and cash flow values of each said piece to determine an aggregate value, wherein said value of said at least one bond is equivalent to said aggregate value.