The Yield Book Calculator

Bringing Market Tested FixedIncome Analytics to your

desktop through the Internet

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The Yield Book Calculator is a new product, delivered overthe Internet, designed to focus on individual securities.

Users can examine value and risk measures of individualfixed income securities, access historical data, performscenario analysis, and compare the characteristics of twofixed income securities.

The Yield Book Calculator is designed to work easily with awide variety of Web sites or programs, including:

• websites dedicated to research and securities offerings• websites used for on - line trading• websites created by users on their own intranet sites• The Bloomberg

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Salomon Direct, Salomon SmithBarney’s sales, trading andresearch site allows you to clickon a security or icon to send thesecurity’s identification andpricing level to the Yield BookCalculator.

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On other Web sites, theuser can cut and pasteinformation from that siteto the Yield BookCalculator.

Other Dealer Offerings

Other Dealer OfferingsSalomon Smith Barney Offerings

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The Yield Book Calculator has:• Security Types:

• Many Government Bond Markets,Corporates, High Yield, Agencies, andLocal Emerging Markets

• Mortgage Products (CMOs, ARMs,ABS, Pools, Generics)

• Analytic capabilities chosen fromdrop down menus:

• Indicative Data• Price Yield• Historical Data• Scenario ROR• Cashflows• Bond Swap• Forward Pricing• Matrix PY (Mtg)• Prepay History (Mtg)

• Live Government & Swap Curves• OAS Models - single, market, or

historical volatilities. OAS toGovernment or Swap Curve.

• Salomon Smith Barney MortgagePrepayment Model

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• Scenario ROR• Forward Pricing• Matrix P/Y (Mtg)• Prepay History (Mtg)

• Yield• OAS• Effective Duration

• Indicative Data• Price Yield• Historical Data• Bond Swap• Cashflows

Panel 3: Dual Display

• Same capabilities as Panel 2 - Choose adifferent capability as shown here or

• Choose the same capability as Panel 2 tocompare two sets of results using differentassumptions.

Panel 4: Live or previous close Government& Swap Curves

The Yield Book Calculatoris designed for flexibility:

Panel 1: Quick Calc gives you

Panel 2: Your choice of

• Bond Search• Pricing Level• Price

PANEL 1

PANEL 2

PANEL 3

PANEL 4

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Display as many panelsof The Yield BookCalculator as you need byusing the one-click resizefeature.

Panel 1: Quick Calc Only

Panel 1 and Panel 4: QuickCalc and Yield Curves

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The Yield Book Calculatorand Online Help are easyto use.

Help features:

• Searchable

• On-line Glossary

• Indexed

• Step-by-Step Examples

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Examples of The Yield Book Calculator . . .

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Example 1: Bond Search and Quick Calc

Panel 1:

• Enter Bond Ticker

• Click Search

• Select the bond

• Enter Pricing Level(price, yield, OAS, etc)

• Click Calculate

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Example 2: OAS to Government or Swap Curve

Panel 1 and 2: Price Yieldcalculation, using 130OAS to the TreasuryCurve as the PricingLevel.

Panel 3: Calculate OAS tothe Swap Curve usingPrice from Panel 2.

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Example 3: Historical Data on Bond Spread

• Access Salomon SmithBarney’s HistoricalDatabase of prices,yields, spreads, OAS,and more on IndividualSecurities.

• Display data in a Graphor Table. Cut and pastetable data from theYield Book Calculatorto other programs, likeExcel.

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Example 4: Mortgage Pricing ComparisonPrice Comparison betweenPrepayment Assumptions:

Panel 1: Quick Calc

Panel 2: Price/Yield calculationusing PSA of 217.

Panel 3: Price/Yield calculationusing 100% of the Salomon SmithBarney Prepayment Model.

Panel 4: Live or previous closeGovernment and Swap Curves

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Example 5: Mortgage Cashflow Comparison

Panel 2 – 217 PSA

Panel 3 - 100% ofPrepayment Model

• Display Cashflows in aGraph or Table. Drag CashFlow Table from Calculatorto other programs.

Cashflow Comparison betweenPrepayment Assumptions:

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Example 6: Scenario Rate of Return

Panel 2: Scenario Rate ofReturn Input View –select scenarios, definehorizon length, RORmethod (constant OASin this example) andPrepay assumption overhorizon.

Panel 3: Scenario Rate ofReturn output – returnsand return components.

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Example 7:Forward Pricing

Panel 2: Price Yieldcalculation for currentsettlement.

Panel 3: Forward Pricing -Calculate pricing for onemonth forward settleassuming a specifiedfinancing rate.

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What Else You Should Know

• The Calculator can be run from any PC connected tothe internet, including from home.

• Additional feature coming soon - Bond Swap tocalculate proceeds and duration weighted trades.

• For additional information, please email:calcsupport@yieldbook.com