・Coupon rates vary along with the change of reference rates.
・Coupon rates have floor protection (the lowest coupon rate is 0%), and are paid semi-annually.
・Reference rate is the compound yield of the average accepted bid of the 10-year JGB auction which was held 6 months before the coupon payment month. The rate is round off the yield to 2 decimal places.
・The smallest amount of a security that may be purchased is ￥100,000.
2. Auction methods (From July 2005)
・The conventional price-competitive auction (multiple-price auction) based on the coupon rate(reference rate –α)
・The α is set in the morning of the auction day and stays constant till maturity.
＊Dutch-style yield auction was used until May 2005.