INFLATION ADJUSTMENT

Year Inflation Inflation

Rate Adjust.
1 2% 2%
2 3% 2.5%
3 4% 3%
4 5% 3.5%
5 6% 4%
10 6% 5%
20 6% 5.5%

INTEREST RATE MODEL

Term kPR INFL DR LR MR k

1 4.0% 2% 0.1% 0.0% 0.0% 6.1%
2 4.0% 2.5% 0.2% 0.0% 0.2% 6.9%
3 4.0% 3% 0.3% 0.5% 0.4% 8.2%
4 4.0% 3.5% 0.4% 0.5% 0.6% 9.0%
5 4.0% 4% 0.5% 0.5% 0.8% 9.8%
10 4.0% 5% 1.0% 1.0% 1.8% 12.8%
20 4.0% 5.5% 1.0% 1.0% 2.0% 13.5%