Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1999-03-31
2004-07-06
Sough, Hyung (Department: 3628)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S030000, C705S031000, C705S032000, C705S033000, C705S035000, C705S03600T, C705S037000, C705S038000, C705S039000, C705S040000, C705S041000, C705S042000, C705S043000, C705S044000, C705S045000
Reexamination Certificate
active
06760710
ABSTRACT:
FIELD OF THE INVENTION
The present invention pertains to an electrical digital computer machine and a data processing system, methods involving the same and products produced thereby, as well as data structures and articles of manufacture pertaining thereto, pertaining to computerized aspects of financial fields of creating and servicing financial instruments, securities exchanges, exchange trading and financial markets. More particularly, this invention relates to a digital electrical data processing system for an improved process for converting constant-dollar financial instruments into equivalent nominal-dollar instruments and connected electrical digital computer apparatus, including a service digital electrical computer apparatus.
Even more particularly, this invention finds utility extending at least to the following: (1) creating and servicing financial instruments; (2) trading, matching, or bidding; (3) credit (risk) processing and credit transactions; (4) associated document generating; and further to (5) point of sale terminal activity, and (6) having security or user identification provision (password entry, etc.); as well as (7) price determination; (8) interconnecting terminals; (9) inventory monitoring; (10) electronic shopping; (11) inventory management; (12) accounting, (13) such as bill or statement preparation.
BACKGROUND OF THE INVENTION
Preferred-return constant-dollar financial instruments have the ability to shift the risk-return tradeoff for investors, enabling investors to increase their returns while reducing their risk. Constant-dollar instruments also have the ability to increase cash flow and reduce default risk for funds users, thus increasing their returns and reducing their risk. However, before preferred-return constant-dollar instruments can be employed, they must be converted into equivalent nominal-dollar instruments.
In the prior art, there is a disclosed process (U.S. Pat. No. 5,237,500) for the exact conversion of preferred-return constant-dollar instruments into equivalent nominal-dollar instruments. The inventors of the present invention have improved this disclosed process by eliminating a step that was considered to be vital in the disclosed process. The present invention also significantly simplifies the conversion process.
In addition to eliminating a step that was considered vital and simplifying the disclosed process, the inventors of the present invention have added the connection of one or more second digital computer apparatus to the first digital computer apparatus that converts constant-dollar instruments into equivalent nominal-dollar instruments. The functions of these second digital computer apparatus include: (1) servicing the equivalent nominal-dollar instruments; (2) trading the equivalent nominal-dollar instruments; (3) brokering the purchase and sale of the equivalent nominal-dollar instruments; (4) credit rating the equivalent nominal-dollar instruments; (5) calculating financial data on the equivalent nominal-dollar instruments for the issuer; (6) calculating financial and portfolio data on the equivalent nominal-dollar instruments for owners of the securities; and, (7) reporting on the equivalent nominal-dollar instruments.
SUMMARY OF THE INVENTION
In view of the foregoing, it is an object of the present invention to provide an improved process for computerized conversion of preferred-return constant-dollar financial instruments into equivalent nominal-dollar instruments.
It is another object of the present invention to provide a first digital electrical computer apparatus including a digital computer having a processor, the processor electrically connected to a memory device for storing and retrieving machine-readable signals, to an input device for receiving input data and converting the input data into input electrical data, and to an output device for converting output electrical data into output having a visual presentation, the processor being controlled by a program to form circuitry in the processor for controlling the apparatus to receive the input data and to produce the output data.
It is yet another object of the present invention to compute with said apparatus to convert the input electrical data to the output electrical data corresponding to characteristics of an equivalent nominal dollar instrument, the computing including computing a nominal payment schedule for the nominal dollar instrument wherein the process does not essentially include a step using a standard convention for expressing an interest rate or rate of return to determine the characteristics of the equivalent nominal dollar instrument.
It is yet a further object of the present invention to generate, by computer means, documentation of the nominal dollar instrument including at least some of the computed characteristics for the nominal dollar instrument.
It is yet an additional object of the present invention to compute to convert a constant dollar instrument into an equivalent nominal dollar instrument wherein the process does not include a step using a standard convention for expressing an interest rate or rate of return to determine the characteristics of the equivalent nominal dollar instrument.
It is still an additional object of the present invention to provide means for inputting an inflation measure, a base period for the inflation measure, a frequency of adjustment, and at least two from a group consisting of a price, a real interest rate, a payment period, a real payment schedule and a real amortization schedule.
It is still another object of the present invention to provide a computerized means for computing (alternatively or in any combination) a price for the nominal dollar instrument, a real payment schedule and/or a payment period.
It is still another object of the present invention to provide a computerized means for comparing a payment period to an adjustment period, and if the payment period is not less than the adjustment period, then computing the nominal payment schedule using an inflation period, then computing a real rate of interest for the adjustment period; computing a modified real payment schedule with a modified payment period equal to the adjustment period and with a present value of payments equal to a price; computing a modified nominal payment schedule equivalent to the modified real payment schedule using the inflation measure and the inflation base period; computing an inflation rate for the adjustment period; computing a nominal interest rate for the adjustment period using the inflation rate for the adjustment period and the real interest rate for the adjustment period; computing a nominal interest rate for the payment period using the payment period and the adjustment period; and computing the nominal payment schedule from the modified nominal payment schedule using the nominal interest rate for the payment period and the nominal interest rate for the adjustment period.
It is yet another object of the present invention to provide computerized means for generating documentation including (alternatively or in any combination) a price, a nominal payment schedule, a nominal interest rate, nominal interest amounts, and/or a nominal amortization schedule.
It is yet still another object of the present invention to provide a service digital electrical computer apparatus including a service digital computer having a service processor, the service processor electrically connected to a service memory device for storing and retrieving machine-readable signals, to a service input device for receiving service input data and converting the service input data into service input electrical data, and to a service output device for converting service output electrical data into service output having a service visual presentation, the service processor being controlled by a service program to form service circuitry in the service processor for controlling the service apparatus to receive the service input data and to produce the service output data; inputting, as a portion of the second input data, the characteristics
Fults Richard
New Market Solutions
Sough Hyung
Trzyna, Esq. Peter K.
LandOfFree
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