Title 7
SECTION 1786.53
1786.53 Discounted present value.
§ 1786.53 Discounted present value.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).