RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 3
TO PROSPECTUS DATED December 10, 1997
(As supplemented December 12, 1997)
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: May 6, 1998
Medium-Term Notes Due
September 5, 2000
Principal Amount: $100,000,000 Maturity Date: September 5, 2000
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: 5.85% Interest Payment Dates:
Semiannually, on March 5 and September
5 each year, beginning on September 5,
1998 and ending on the Maturity Date
Commission or discount (as CUSIP No: 459 20Q AU8
a percentage of Principal
Amount): 0.00%
Redemption Provisions: NONE
Form: [X] Book-Entry
[ ] Certificated
This Pricing Supplement supplements and, to the extent inconsistent therewith,
amends the description of the Notes referred to in the accompanying Prospectus
Supplement and Prospectus.
INTEREST
Interest on the Notes will be calculated based on a year of 360 days
consisting of 12 months of 30 days each.
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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 this offering, "Business Day" as used here as well as 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 in this Pricing Supplement have the meanings assigned
in the accompanying Prospectus Supplement and Prospectus.
REDEMPTION
The Notes are not redeemable by the Company.
PLAN OF DISTRIBUTION
The Notes will be sold to Chase Securities Inc. 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: May 1, 1998
