According to an announcement published by the Central Bank of Iceland on 26 July 2012 regarding the Central Bank of Iceland foreign currency auction to be held on 29 August 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 23 August 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 106.967300 kr. per Treasury bond unit with accrued interest and indexation (dirty price), assuming a settlement date of 31 August 2012 (yield 2.77%).1
The formula is as follows: Swap rate = auction price/(bond price/100).
1Clean price of 103.56.
