PARRS Rate Reset Calculation Illustrations

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.

2011 Reset Calculation for TVE

Date	U.S. Treasury 30-YR CMT Rate (1)
03/21/2011	4.45%
03/22/2011	4.44%
03/23/2011	4.44%
03/24/2011	4.48%
03/25/2011	4.51%
Average	4.464%
+84 Basis Points (2)	0.840%
= Calculated Rate (3)	5.304%
Current Rate	4.500%
	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".

 

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.

2011 Reset Calculation for TVC
Date	U.S. Treasury 30-YR CMT Rate (1)
04/25/2011	4.46%
04/26/2011	4.39%
04/27/2011	4.45%
04/28/2011	4.42%
04/29/2011	4.40%
Average	4.424%
+94 Basis Points (2)	0.940%
= Calculated Rate(3)	5.364%
Current Rate	4.728%
	NO RESET
(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".