=2/In August 2014, Mineral Waters from Syldavia launched a two-tranche bond of the same size: Tranche A

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=2/In August 2014, Mineral Waters from Syldavia launched a two-tranche bond of the same size:

Tranche A Tranche B Redemption at maturity in 10 years at maturity in 10 years Interest rate 8% + 1.5 × (ABY − 8.3%) 8% − 1.5 × (ABY − 8.3%)

Interest rate floor/ceiling 0% − 16% 0% − 16%

ABY = average bond yield on Syldavian market On the launch date of the bond, the ABY was 8.3%.

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