This report by Drs. Iván Alonso and Italo analyzes the formulas for bond valuation issued by the Peruvian Ministry of Economy and Finance in January 2014, and finds a number of glaring flaws. Problems include mathematically inconsistent formulas for determining parity exchange rates and the use of a one-year US Treasury rate as a benchmark rather than an annual rate equal to the 20- or 30-year average. Further, the guidelines state that interest should only accrue until 2013 and that the bonds will use the exchange rate in 2013, rather than adjusting both figure to the actual date of redemption. The report ends with recommendations from the authors how to rectify these shortcomings.