Certificates of Deposit-Example

Issuer	"XYZ Bank"
Issue Date	July 17, 2003
Maturity Date	July 10, 2023
Principal Amount	$10,000,000
Coupons	5.00%
Yield to Maturity	5.00%
Annual Percentage Yield	5.00%
Payment Dates	Monthly on each 10th of the month, beginning August 10, 2003.
Interest Calculation	Based on number of days elapsed since the last interest payment date, based on a 365-day year. No adjustment for weekend or holidays.
Call Provision	Callable in whole at par starting July 10, 2006, then semiannually on each coupon payment date thereafter, with 15 calendar days notice.
Denominations	$1,000 minimum and multiples. $90,000 maximum purchase per depositor, per issuer.

In the coupon section, you’ll see that this hypothetical Federally Insured Deposits has a 5.00% fixed coupon.

The issue is not callable for three years, which means that the issuer has agreed to pay 5.00% of principal to owners for the first three years of the investment, after which time the issue becomes callable at par on the coupon payment dates at the option of the issuer, “XYZ Bank”.

If the Federally Insured Deposits are not called by “XYZ Bank” on July 10, 2006 (the first call date), the issuer is obligated to continue to pay the owner 5.00% of principal per year.

However, the Federally Insured Deposits remain callable on each succeeding coupon payment date (semiannually) with 15 days notice.

This process will continue until the maturity date, unless the Federally Insured Deposits is called before then.

Any redemption will be made at par plus any unpaid interest accrued to the call date. If the Federally Insured Deposits are held to maturity, the issuer is obligated to pay the owners of these securities their original investment back (par) at the time.

Example Callable Fixed-Coupon FID Offering