Federal Home Loan Mortgage Corporation - Page 23

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          GMC C 1977                   17,407,946                                     
          GMC A 1978                   24,814,023                                     
          GMC B 1978                   12,413,781                                     
          GMC C 1978                    9,776,662                                     
          GMC A 1979                    8,521,734                                     
          GMC B 1979                    6,626,888                                     
          GMC C 1979                    8,946,893                                     
          CMO A-2                       6,254,753                                     
          CMO A-3                      12,511,453                                     
          CMO C-4                         623,683                                     
          Total                     428,391,551                                       
               Petitioner relies on the expert opinion and testimony of Dr.           
          Stephen M. Schaefer to determine the value of its favorable                 
          financing.  Professor Schaefer received his doctor of philosophy            
          at the University of London, Faculty of Economics.  He currently            
          serves as a professor of finance at London Business School and              
          has been a visiting professor at seven universities around the              
          world.  Professor Schaefer has also served on the editorial                 
          boards of numerous publications, published two books, and                   
          published over 30 articles and notes relating to finance and                
          economics.                                                                  
               Professor Schaefer explained that the benefit of favorable             
          financing is based on the difference between the interest                   
          payments on an existing debt obligation and the interest payments           
          made at the prevailing market rate.  The value of the favorable             
          financing benefit equals the present value of this difference.              
          When debt obligations are exchanged in a free market, the price             
          paid for the debt instruments equals the fair market value of the           
          future cashflows.  The market price reflects uncertainties; for             






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