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 kth 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 ith payment period that are in a non-leap year (365 day year).
D2i = Number of days in the ith payment period that are in a leap year (366 day year).
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