DRAFT – Preliminary and Subject to Change
TREASURY FLOATING RATE NOTE TERM SHEET
I. ISSUER United States TreasuryII. ISSUE DATE The last Friday of a calendar month.III. MATURITY DATE Last calendar day of the month two years after the issuedate.IV. MATURITY PAYMENT Principal will be paid on the last business day of thematurity month unless that day is not a business day, theninterest is paid on the following business day.V.INTEREST DATES Quarterly from the Issue Date, to and including theMaturity Date, on the last calendar day of a month.VI. INTEREST PAYMENTS Interest will be paid on the last business day of the monthunless that day is not a business day, then interest is paid onthe following business day.VII. INTEREST:A. ACCRUAL PERIOD From and including the Issue Date or last Interest Date to,but excluding, the next Interest Date.B. INTEREST ACCRUAL In general, accrued interest for a particular calendar day inan Accrual Period shall be the Index Rate from the mostrecent auction of 13-week Treasury bills that took placebefore the accrual day, plus the Spread, divided by 360,subject to a minimum of zero.However, for purposes of calculating FRN auctionsettlement amounts and quarterly FRN interest payments, a13-week bill auction that takes place in the two businessday Lock-Out Period prior to the FRN auction settlementdate or FRN Interest Date shall be excluded from thecalculation of accrued interest for purposes of thatsettlement amount or interest payment.C. INDEX RATE The High Rate from a 13-week Treasury bill auction asannounced by the Bureau of the Public Debt, converted to asimple-interest money market yield on an actual/360 basis.D. SPREAD As determined in the security’s initial auction; expressed intenths of a basis point.
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DRAFT – Preliminary and Subject to Change
E. MINIMUM DAILYINTEREST ACCRUAL 0.000 percentF. RESET FREQUENCY Daily, if not a Business Day then the preceding BusinessDay.G. DAY COUNTCONVENTION actual/360H. LOCK-OUT PERIOD The two business days preceding an FRN auction Issuedate or an FRN Interest Date.VIII. BUSINESS DAY Any day other than a Saturday, a Sunday, or a day onwhich the Federal Reserve Bank of New York is closed.IX. STRIPS ELIGIBLE NoX. CALCULATION AGENT United States TreasuryXI. ORIGINAL ISSUE PRICE Determined at auctionXII. AUCTION TECHNIQUE A single price auction format in which each competitivetender specifies a Discount Margin (which can be positive,zero, or negative, expressed in tenths of a basis point). Treasury will first accept in full all noncompetitive tendersup to $5 million per submitter received by the closing timespecified in the offering announcement.Competitive tenders will be accepted in order of DiscountMargin, starting from the lowest Discount Margin, up tothe Discount Margin needed to fill the public offering. The usual Treasury proration rules will apply if the amountof tenders indicating the highest accepted Discount Marginexceeds the amount of the public offering remaining. The Spread on a floating rate note offered in an originalissue auction will be set at the highest accepted DiscountMargin in that auction. The Spread on a floating rate note offered in a reopeningauction will be as set in the note’s original issue auction.
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