- 34 -
equal to the yield on the Bond issues. These calculations
indicate that the yield of the Whitewater GIC was 9.5520 percent,
and the yield of the Whitewater bonds was 7.3750 percent. As of
February 20, 1991, the first computation date, respondent's
calculations indicate that the future value of the earnings on
the Whitewater GIC exceeded the amounts that would have been
earned if the GIC were invested at the yield rate of the
Whitewater bonds by $2,079,204.05.17 Equivalent calculations for
the Ironwood bonds show that the yield on the Ironwood GIC was
again 9.5520 percent while the yield on the Ironwood bonds was
7.6652 percent, generating an excess of $1,242,876.71 as of the
17Respondent computed this excess as follows:
Days
Payment Receipt Future Value To Comp.
2/20/86 (16,110,817.98) (23,140,973.48) 1800
5/27/86 678,125.00 955,210.32 1703
11/26/86 678,125.00 921,424.96 1524
5/27/87 678,125.00 888,477.02 1343
11/25/87 678,125.00 857,224.42 1165
5/27/88 678,125.00 826.405.87 983
11/25/88 678,125.00 797,336.65 805
5/26/89 678,125.00 768,825.81 624
11/24/89 678,125.00 741,782.00 446
5/25/90 678,125.00 715,257.66 265
11/26/90 678,125.00 689,681.77 84
2/20/91 17,061,551.08 17,061,551.08 0
2/20/91 (3,000.00) 0.00 (3,000.00) 0
5/27/92 0.00 0.00 -457
1/25/92 0.00 0.00 -635
5/27/93 0.00 0.00 -817
11/26/93 0.00 0.00 -996
(16,113,817.98) 23,842,801.08 2,079,204.05
Respondent used the same procedure in calculating the excess amount for the
Ironwood bonds.
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