Code of Federal Regulations (alpha)

CFR /  Title 7  /  Part 1786  /  Sec. 1786.53 Discounted present value.

The Discounted Present Value shall be calculated five business days before prepayment is made by summing the present values of all remaining payments by using the following formula:[GRAPHIC] [TIFF OMITTED] TC16SE91.025 Where: Pk = Total payment including interest, due on the k

th payment date following the prepayment date.n=Total number of remaining payments dates.I=The discount rate, in decimals, which shall be the average rate on

utility bonds bearing a rating of ``Aa'' as set forth in that

issue of Moody's Public Utility News Reports most recently

published prior to the date on which Discounted Present Value

is calculated.D11 = Number of days in the i th payment period

that are in a non-leap year (365 day year).D2i = Number of days in the i th payment period

that are in a leap year (366 day year).