The bond is linked to the performance of the FTSE 100 and S&P 500 indices and gives investors a choice of a cautious income or higher income option.
The cautious income option pays 7.5 per cent a year or 0.61 per cent a month. Investors will also get their original capital back provided both indices finish at or above 50 per cent of their initial levels by the end of the term. If at least one index falls by more than 50 per cent and does not recover to at least its initial level, investors will lose 1 per cent of their capital for every 1 per cent fall in the worst performing index.
As its name suggests, the higher income option pays out a higher level of income than the cautious option but this is matched by a lower degree of capital protection. Investors will get 9 per cent income a year or 0.73 per cent a month. The capital protection is similar to the cautious income option except that the soft protection is set at 30 per cent rather than 50 per cent.
To calculate the returns, the closing level of each index is recorded on May 28, 2008 and measured against their respective closing levels on May 28, 2013.
According to the Structured Retail Products adviser website, this is unique as there are no other income products linked to the FTSE 100 and S&P 500. It may appeal to investors looking for the greater diversity a product linked to a basket of indices has compared with a basket of stocks.
However, one potential drawback is that no income will be paid in the period between May 28, 2013 and the maturity date of June 11, 2013.