Zero coupon bond

This contract is the archetype version of the contract taken from the Findel paper (Financial Derivatives Language).
Suppose Alice sells to Bob a zero-coupon (i.e., paying no interest) bond that pays $11 in one year for $10.
The findel expression below describes this contract:
1
And ( Give( Scale( 10; One( USD ))); At( now+1 years; Scale( 11 ; One( USD ))))
Copied!
zero_coupon_bond.arl
1
archetype zero_coupon_bond
2
​
3
variable issuer : role  = @tz1bfVgcJC4ukaQSHUe1EbrUd5SekXeP9CWk (* seller 'Alice' *)
4
​
5
variable owner : role = @tz1Lc2qBKEWCBeDU8npG6zCeCqpmaegRi6Jg
6
(* buyer 'Bob'; receives 11 tez in one-year *)
7
​
8
​
9
variable price : tez = 10tz
10
​
11
variable payment : tez = 1.1 * price
12
​
13
variable maturity : date = 2020-12-31
14
​
15
states =
16
  | Created initial
17
  | Confirmed (* owner has purchased bond *)
18
  | Repaid    (* issuer has transferred payment to contract *)
19
  | Collected (* owner has collected payment *)
20
​
21
transition confirm () {
22
  specification {
23
    postcondition s1 {
24
      balance = 0tz
25
    }
26
  }
27
​
28
  from Created
29
  to Confirmed
30
  when { transferred = price }
31
  with effect {
32
    maturity := now + 365d;
33
    transfer price to issuer
34
  }
35
}
36
​
37
transition repay () {
38
  called by issuer
39
​
40
  from Confirmed
41
  to Repaid when { transferred = payment }
42
}
43
​
44
transition collect () {
45
  called by owner
46
​
47
  from Repaid
48
  to Collected
49
  when { now >= maturity }
50
  with effect {
51
    if balance >= payment
52
    then transfer balance to owner
53
  }
54
}
55
​
Copied!

Contract library - Previous

Finance

Zero coupon with insurance

Last modified 1yr ago

Export as PDF

Copy link