The Guidelines also contain provisions stating how the Government proposes to calculate the debt due to each bondholder. It describes these calculations by a series of complex equations. The equations are not easy for a lay person to understand. They purport to convert a nominal amount of Soles Oro into U.S. dollars using what they call a “parity exchange rate.” However, instead of using a well- established international reference for such a parity exchange rate, the Guidelines calculate that rate with another complex equation that is unusual and unfounded.“An Analysis of the Formulas for Calculating the Redemption Value of Land Reform Bonds in Peru,” prepared by Dr. Iván Alonso and Dr. Ítalo Munoz, p. 6 (noting that they “know of no economic theory or reputable author supporting a formulation similar to the MEF formula.”), http://bonosagrarios.pe/wp-content/uploads/2015/03/Reporte%20pericial%20de%20Alonso.pdf.See also: “The Appropriate Parity Exchange Rate to be Used in Valuing Land Reform Bonds in Peru,” prepared by Dr. Alan Heston, Table 1, Estimates of Annual Parity Exchange Rates, Based on ICP Benchmark Comparisons, http://bonosagrarios.pe/wp-content/uploads/2015/03/Reporte-pericial-de-Heston.pdf.
