Tennessee Valley Authority
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.
2012 Reset Calculation for TVC
| Date | U.S. Treasury 30-YR CMT Rate (1) |
| 04/23/2012 | 3.080% |
| 04/24/2012 | 3.120% |
| 04/25/2012 | 3.150% |
| 04/26/2012 | 3.130% |
| 04/27/2012 | 3.120% |
| Average | 3.120% |
| +94 Basis Points (2) | 0.940% |
| = Calculated Rate(3) | 4.060% |
| Current Rate | 4.728% |
| RATE WILL RESET | |
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| (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.
2012 Reset Calculation for TVE
| Date | U.S. Treasury 30-YR CMT Rate (1) |
| 03/26/2012 | 3.33% |
| 03/27/2012 | 3.29% |
| 03/28/2012 | 3.31% |
| 03/29/2012 | 3.27% |
| 03/30/2012 | 3.35% |
| Average | 3.310% |
| +84 Basis Points (2) | 0.840% |
| = Calculated Rate (3) | 4.150% |
| Current Rate | 4.500% |
| RATE WILL RESET | |
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(1) Per 1999 Series A Offering Circular, and 1999 Series A Legal Notice |
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(2) Per 1999 Series A Offering Circular |
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(3) Coupon rate will reset if "Calculated Rate" is below the "Current Rate". |
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