The Clean Price Index value on day t is calculated as follows:

Whereby: P =  Clean Price
               C =  Amount Outstanding
               q = Constituent

The Total Return Index value on day t is calculated as follows:

Whereby: P =  Clean Price
               A= Accrued Interest
               C =  Amount Outstanding
               q= Constituent
               CPN= Total Coupon Cashflow

ISEQ® Bond Index Entrants, Departures & Corporate Actions

• New Entrants: Government Bonds will be added to one or more indices in the BIS under the following circumstances:

1. Whenever a Government Bond is issued for the first time, it is included in the relevant indices of the BIS based on its maturity date.

2. Due to the ongoing daily change in the time to maturity, the Government Bond leaves one maturity band and enters another maturity band within the BIS.

 The return for day t is based on the outstanding amounts from the previous business day; therefore a new entrant into an index on day t will only affect the return on that index from day t+1 onward.  The price for a new Government Bond issued for the first time on day t is set equal to the closing price on  the day (t) on which it was issued.

• Departures: Government Bonds are removed from one or more indices in the BIS under the following circumstances:

1. There are less than 20 business days to maturity, resulting in the removal of the Government Bond from all indices in the BIS

2. The Government Bond leaves a maturity band due to the its change in the number of days to maturity, resulting in the removal of the Government Bond from the relevant indices within the BIS

3. Upon instruction form the National Treasury Management Agency (NTMA) due to the Government Bond being bought back or removed from the market

• Corporate Action Processing: Changes to the amount in issue (issued capital adjustment):
 This event doesn’t cause a change in the index as the index changes are only due to price.  As stated above this is because the return for day t is based on the outstanding amounts from the previous business day.