2006 PARRS Rate Reset Sample Calculations

1998 Series D (NYSE:TVC)

The coupon rate on the 1998 Series D 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’s 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.

2006 Reset Calculation for TVC
Date		U.S. Treasury 30-YR CMT Rate (1)
4/24/06		5.07%
4/25/06		5.16%
4/26/06		5.18%
4/27/06		5.18%
4/28/06		5.17%
	Average	5.152%
	+94 Basis Points (2)	0.940%
	= Calculated Rate(3)	6.092%
	Current Rate	5.490%
		NO RESET
(1) Per 1998 Series D Offering Circular, and 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 (NYSE:TVE)

The coupon rate on the 1999 Series A 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.

Example:

2006 Reset Calculation for TVE
Date		U.S. Treasury 30-YR CMT Rate (1)
3/27/06		4.73%
3/28/06		4.80%
3/29/06		4.84%
3/30/06		4.89%
3/31/06		4.90%
	Average	4.832%
	+84 Basis Points(2)	0.840%
	= Calculated Rate(3)	5.672%
	Current Rate	5.618%
		NO RESET
(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.

 

Note: 30-year Treasury constant maturity series was discontinued on February 18, 2002 and reintroduced on February 9, 2006. From February 18, 2002 to February 8, 2006, Treasury published alternatives to a 30-year rate. Please see U.S. Treasury Daily Treasury Yield Curve Rates for more information.