[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1786.53]

[Page 1100]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1786--PREPAYMENT OF RUS GUARANTEED AND INSURED LOANS TO ELECTRIC AND TELEPHONE BORROWERS--Table of Contents
 
  Subpart C--Special Discounted Prepayments on RUS Direct/Insured Loans
 
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 
kth 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 ith payment period that 
are in a non-leap year (365 day year).
D2i=Number of days in the ith payment period that 
are in a leap year (366 day year).