GroundRules
7 CFR 1786.53: Discounted present value.
Where this section sits in the code
- Title 7—Agriculture
- Subtitle B—Regulations of the Department of Agriculture
- CHAPTER XVII—RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
- PART 1786—PREPAYMENT OF RUS GUARANTEED AND INSURED LOANS TO ELECTRIC AND TELEPHONE BORROWERS
- Subpart C—Special Discounted Prepayments on RUS Direct/Insured Loans
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:
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).
Collected 2026-08-27T02:24:01Z. Source file · JSON