According to an announcement published by the Central Bank of Iceland on 23 July 2013 regarding the Central Bank of Iceland foreign currency auction to be held on 3 September 2013, 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 30 August 2013.
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 111.403610 kr. per Treasury bond unit with accrued interest and indexation (dirty price), assuming a settlement date of 6 September 2013 (yield 2.75%).1
The formula is as follows: Swap rate = auction price/(bond price/100).
1Clean price of 103.8
