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PARRS Rate Reset Calculation Illustrations

1998 Series D (TVC) Calculation

The coupon rate on the 1998 Series D ("TVC") PARRS may be reset downward, under certain conditions, on June 1 of each year. The coupon rate will be reset if the sum of the average of the U.S. Treasury 30-Year CMT rate for the week ending the last Friday in April, plus 0.94% (94 "basis points"), is less than the current coupon rate.

2008 Reset Calculation for TVC

Date   U.S. Treasury 30-YR CMT Rate (1)
04/21/2008   4.48%
04/22/2008   4.46%
04/23/2008   4.49%
04/24/2008   4.56%
04/25/2008   4.61%

  Average 4.520%
+94 Basis Points (2) 0.940%
= Calculated Rate(3) 5.460%
Current Coupon Rate 5.490%
 
(1) Per 1998 Series D Offering Circular, and 1998 Series D Legal Notice     
(2) Per 1998 Series D Offering Circular
(3) Coupon rate will reset if Calculated Rate is below the Current Rate  

1999 Series A (TVE) Calculation

The coupon rate on the 1999 Series A ("TVE") PARRS may be reset downward, under certain conditions, on May 1 of each year. The coupon rate will be reset if the sum of the average of the U.S. Treasury 30-Year CMT rate for the week ending the last Friday in March, plus 0.84% (84 basis points), is less than the current coupon rate.

2008 Reset Calculation for TVE

Date   U.S. Treasury 30-YR CMT Rate (1)
03/24/2008   4.33%
03/25/2008   4.30%
03/26/2008   4.33%
03/27/2008   4.38%
03/28/2008   4.33%

  Average 4.334%
+84 Basis Points (2) 0.840%
= Calculated Rate(3) 5.174%
Current Rate 5.618%
 
(1) Per 1999 Series A Offering Circular, and 1999 Series A Legal Notice
(2) Per 1999 Series A Offering Circular
(3) Coupon rate will reset if Calculated Rate is below the Current Rate.

 

 

           
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