RULE 424(b)(3)
REGISTRATION NO. 33-65119
PRICING SUPPLEMENT NO. 5 TO PROSPECTUS DATED FEBRUARY 7, 1996
(As supplemented April 18, 1996)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Fixed Rate Note)
(Due One Year or More from Date of Issue)
Designation: Fixed Rate Original Issue Date:
Medium-Term Notes Due September 24, 1996
September 24, 2006
Principal Amount: $20,000,000 Maturity Date:
September 24, 2006
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day,
whether or not a Business
Day, immediately preceding
the corresponding Interest
Payment Date
Interest Rate: 7.50% Interest Payment Dates:
Each September 24th and
March 24th commencing
March 24, 1997 and ending
on the Maturity Date
Commission or discount (as a CUSIP: 45920Q AE4
percentage of Principal Amount): 0%
Redemption Provisions:
The Notes are redeemable at the
option of the Company on each
Interest Payment Date occurring
on or after September 24, 1998.
Form: [X] Book-Entry
[ ] Certified
This Pricing Supplement supplements and, to the extent inconsistent
therewith, amends the description of the Notes referred to above in
the accompanying Prospectus Supplement and Prospectus.
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INTEREST
Interest on the Notes will be calculated based on a year of 360 days
consisting of 12 months of 30 days each. If any payment of principal
or interest is due on a day that is not a Business Day, that payment
may be made on the next succeeding Business Day. No additional
interest will accrue as a result of the delay in payment. For
purposes of the offering made hereby, "Business Day" as used herein
and in the accompanying Prospectus Supplement means each day on which
commercial banks and foreign exchange markets settle payments in The
City of New York. Capitalized terms used but not defined herein have
the meanings assigned in the accompanying Prospectus Supplement and
Prospectus.
REDEMPTION
The Notes are redeemable by the Company on each Interest Payment
Date occurring on or after the September 24, 1998 Interest Payment
Date, in whole but not in part, on at least 30 days prior notice at a
redemption price of 100% of the principal amount thereof plus accrued
interest thereon to the date of redemption.
PLAN OF DISTRIBUTION
The Notes will be sold to Morgan Stanley & Co. Incorporated at the
Issue Price set forth above for resale to one or more investors at
varying prices related to prevailing market prices at the time of resale.
Dated: September 10, 1996
