Bond price for foreign exchange auction

10/1/2012 12:02 PM EST

Government Debt Management
Company Announcement

Bond price for foreign exchange auction

According to an announcement published by the Central Bank of Iceland on 5
September 2012 regarding the Central Bank of Iceland foreign currency auction
to be held on 3 October 2012, the Terms of Auction stated that the swap rate
for the Bank’s purchase of foreign currency in connection with the sale of
Treasury bonds in the series RIKS 33 0321 would be published at the close of
business on 1 October 2012. 

It has been decided that the number of Treasury bond units per euro shall be
based on the auction price and the fixed price of the Treasury bonds, which is
109.154248 kr. per Treasury bond unit with accrued interest and indexation
(dirty price), assuming a settlement date of 5 October 2012 (yield 2.65%)1 

The formula is as follows: Swap rate = auction price/(bond price/100).








1Clean price of 105.5.