Walt Disney.xls

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Walt Disney Company's Slepping Beauty Bonds-Duration Analysis-courseware Harvard Business School Case 294-038 Courseware 9-208-725 This courseware was prepared by Professor Carliss Y. Baldwin solely for students as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2008 President and Fellows of Harvard College. No part of this product may be reproduced, stored in a retrieval system, used in a spreadsheet or transmitted in any form or by any means—electronic, mechanical, photocopying, recording or otherwise—without the permission of Harvard Business School.

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Sleeping Beauty Basic Spreadsheet Calendar

Relative Cash Flow

Year

Year

per $100

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55

Present Value 75.50

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Sleeping Beauty Present Value as a Function of the Interest Rate Calendar Year

Relative Year

Cash Flow per $100

1993

0

1994

1

7.55

1995

2

7.55

1996

3

7.55

1997

4

7.55

1998

5

7.55

1999

6

7.55

2000

7

7.55

2001

8

7.55

2002

9

7.55

2003

10

7.55

2004

11

7.55

2005

12

7.55

2006

13

7.55

2007

14

7.55

2008

15

7.55

2009

16

7.55

2010

17

7.55

2011

18

7.55

2012

19

7.55

2013

20

7.55

2014 2015 2016 2017 2018 2019 2020

21 22 23 24 25 26 27

7.55 7.55 7.55 7.55 7.55 7.55 7.55

Interest Rates

2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 100% 500% 1000%

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Present Values

$339.20 $243.78 $186.99 $150.61 $125.76 $107.85 $94.38 $83.89 $75.50 $68.64 $62.92 $58.08 $53.93 $50.33 $47.19 $44.41 $41.94 $39.74 $37.75 $7.55 $1.51 $0.76

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Sleeping Beauty Bonds of Different Maturity Cash Flow per $100

Present Values for 10 Year Bond

Calendar

Relative

Sleeping

Napping

Year

Year

Beauties

Beauties

1993

0

1994

1

7.55

7.55

7.02

1995

2

7.55

7.55

6.53

1996

3

7.55

7.55

6.07

1997

4

7.55

7.55

5.64

1998

5

7.55

7.55

5.25

1999

6

7.55

7.55

4.88

2000

7

7.55

7.55

4.54

2001

8

7.55

7.55

4.22

2002

9

7.55

7.55

3.92

2003

10

7.55

107.55

51.94

2004

11

7.55

2005

12

7.55

2006

13

7.55

2007

14

7.55

2008

15

7.55

2009

16

7.55

2010

17

7.55

2011

18

7.55

2012 2013 2014 2015 2016

19 20 21 22 23

7.55 7.55 7.55 7.55 7.55

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

24 25 26 27 28 29 30 31 32 33 34

7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55

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2028 2029 2030 2031 2032

35 36 37 38 39

7.55 7.55 7.55 7.55 7.55

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Interest Rates 2% 3% 4% 5% 6% 7% 7.55% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%

Present Value Sleeping Napping Beauties Beauties $339.20 $243.78 $186.99 $150.61 $125.76 $107.85 $100.00 $94.38 $83.89 $75.50 $68.64 $62.92 $58.08 $53.93 $50.33 $47.19 $44.41 $41.94 $39.74 $37.75

$149.85 $138.81 $128.79 $119.69 $111.41 $103.86 $100.00 $96.98 $90.69 $84.95 $79.68 $74.86 $70.43 $66.36 $62.61 $59.16 $55.98 $53.04 $50.32 $47.80

Napping Beauties 160 140 120 100 80 Page 6

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80 60 40

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Present Value of a 100-year and a 10-year Bond as a Function of the Interest Rate $200.00

100-year bonds

Present Value

$150.00

$100.00

10-year bonds $50.00

$0.00 2%

4%

6%

8%

10%

12%

Interest Rate

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14%

16%

18%

20%

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Sleeping Beauty Calculation of Duration Calendar

Relative

Year

Year

Sleeping Beauties 7.55%

Interest

10-Year Bond 7.55%

30-Year Bond 7.55%

Rate Duration

14.24

(in Years) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 0.85 0.79 0.74 0.68 0.64 0.59 0.55 0.51 0.48

7.02 13.05 18.21 22.57 26.23 29.27 31.75 33.74 35.29 36.46 37.29 37.83 38.10 38.15 38.01 37.70 37.24 36.66 35.98 35.22 34.38 33.49 32.56 31.59 30.59 29.58 28.56 27.54 26.52 25.51 24.51 23.53 22.56 21.61 20.68 19.78 18.90 18.05

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7.37 7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 51.94

7.02 13.05 18.21 22.57 26.23 29.27 31.75 33.74 35.29 519.41

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 12.11

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2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083

39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90

0.44 0.41 0.38 0.36 0.33 0.31 0.29 0.27 0.25 0.23 0.21 0.20 0.18 0.17 0.16 0.15 0.14 0.13 0.12 0.11 0.10 0.10 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01

17.23 16.43 15.66 14.91 14.20 13.51 12.84 12.21 11.60 11.01 10.45 9.92 9.41 8.92 8.45 8.01 7.58 7.18 6.79 6.43 6.08 5.75 5.43 5.13 4.85 4.58 4.33 4.09 3.86 3.64 3.43 3.24 3.05 2.88 2.71 2.56 2.41 2.27 2.14 2.02 1.90 1.79 1.68 1.58 1.49 1.40 1.32 1.24 1.17 1.10 1.03 0.97

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2084 2085 2086 2087 2088 2089 2090 2091 2092 2093

91 92 93 94 95 96 97 98 99 100

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.07

0.91 0.86 0.81 0.76 0.71 0.67 0.63 0.59 0.55 7.42

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30-Year Bond

30-Year Zero 7.55%

12.64 7.02 13.05 18.21 22.57 26.23 29.27 31.75 33.74 35.29 36.46 37.29 37.83 38.10 38.15 38.01 37.70 37.24 36.66 35.98 35.22 34.38 33.49 32.56 31.59 30.59 29.58 28.56 27.54 26.52 363.43

30.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3000

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Sleeping Beauty Sensitivity Up Calendar

Relative

Year

Year

Interest Rate Value % Ch. In Value 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

Sleeping Beauty

10-Year Bond

30-Year Bond

30-Year Zero

7.55%

7.55%

7.55%

7.55%

100.00 11.69%

100.00 6.55%

100.00 10.70%

100.00 24.24%

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 0.85 0.79 0.74 0.68 0.64 0.59 0.55 0.51 0.48 0.44

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 51.94

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 12.11

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100

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2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083 2084

40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91

0.41 0.38 0.36 0.33 0.31 0.29 0.27 0.25 0.23 0.21 0.20 0.18 0.17 0.16 0.15 0.14 0.13 0.12 0.11 0.10 0.10 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01

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2085 2086 2087 2088 2089 2090 2091 2092 2093

92 93 94 95 96 97 98 99 100

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.07

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Sleeping 10-Year Beauty Bond

30-Year Bond

30-Year Zero

8.55%

8.55%

8.55%

8.55%

88.31

93.45

89.30

75.76

6.96 6.41 5.90 5.44 5.01 4.61 4.25 3.92 3.61 3.32 3.06 2.82 2.60 2.39 2.21 2.03 1.87 1.72 1.59 1.46 1.35 1.24 1.14 1.05 0.97 0.89 0.82 0.76 0.70 0.64 0.59 0.55 0.50 0.46 0.43 0.39 0.36 0.33 0.31

6.96 6.41 5.90 5.44 5.01 4.61 4.25 3.92 3.61 47.35

6.96 6.41 5.90 5.44 5.01 4.61 4.25 3.92 3.61 3.32 3.06 2.82 2.60 2.39 2.21 2.03 1.87 1.72 1.59 1.46 1.35 1.24 1.14 1.05 0.97 0.89 0.82 0.76 0.70 9.18

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 75.75609988

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0.28 0.26 0.24 0.22 0.20 0.19 0.17 0.16 0.15 0.14 0.12 0.12 0.11 0.10 0.09 0.08 0.08 0.07 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00

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0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03

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Sleeping Beauty Sensitivity Down Calendar

Relative Sleeping10-Year30-Year30-Year

Year

Year Beauty

7.55% 7.55% 7.55% 7.55%

Interest Rate Value % Ch. In Value 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Bond Bond

Sleeping Zero Beauty

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

10-Year Bond

0.07

0.07

100.00 15.24%

100.00 7.17%

100.00 12.99%

100.00 32.35%

115.24

107.17

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 0.85 0.79 0.74 0.68 0.64 0.59 0.55 0.51 0.48

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 51.94

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 12.11

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100

7.09 6.65 6.24 5.86 5.50 5.16 4.84 4.54 4.27 4.00 3.76 3.53 3.31 3.11 2.92 2.74 2.57 2.41 2.26 2.12 1.99 1.87 1.75 1.65 1.55 1.45 1.36 1.28 1.20 1.13 1.06 0.99 0.93 0.87 0.82 0.77 0.72 0.68

7.09 6.65 6.24 5.86 5.50 5.16 4.84 4.54 4.27 57.03

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2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083

39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90

0.44 0.41 0.38 0.36 0.33 0.31 0.29 0.27 0.25 0.23 0.21 0.20 0.18 0.17 0.16 0.15 0.14 0.13 0.12 0.11 0.10 0.10 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01

0.64 0.60 0.56 0.53 0.49 0.46 0.43 0.41 0.38 0.36 0.34 0.32 0.30 0.28 0.26 0.25 0.23 0.22 0.20 0.19 0.18 0.17 0.16 0.15 0.14 0.13 0.12 0.11 0.11 0.10 0.09 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.03

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2084 2085 2086 2087 2088 2089 2090 2091 2092 2093

91 92 93 94 95 96 97 98 99 100

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.07

0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.19

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30-Year Bond

30-Year Zero

0.07

0.07

112.99

132.35

7.09 6.65 6.24 5.86 5.50 5.16 4.84 4.54 4.27 4.00 3.76 3.53 3.31 3.11 2.92 2.74 2.57 2.41 2.26 2.12 1.99 1.87 1.75 1.65 1.55 1.45 1.36 1.28 1.20 16.03

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 132.35

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Sleeping Beauty The Relation between Duration and Interest Rate Sensitivity

% Ch if Rate Down 1% Duration % Ch. If Rate Up 1%

Sleeping Beauty

10-Year Bond

30-Year Bond

30-Year Zero

15.2%

7.2%

13.0%

32.4%

14.24

7.37

12.64

30.00

11.7%

6.6%

10.7%

24.2%

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est Rate Sensitivity

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Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045

Raw Value Of Present Value Cash Flows of Cash Flows 7.55 6.8636 7.55 6.2397 7.55 5.6724 7.55 5.1568 7.55 4.6880 7.55 4.2618 7.55 3.8743 7.55 3.5221 7.55 3.2019 7.55 2.9109 7.55 2.6462 7.55 2.4057 7.55 2.1870 7.55 1.9882 7.55 1.8074 7.55 1.6431 7.55 1.4937 7.55 1.3579 7.55 1.2345 7.55 1.1223 7.55 1.0202 7.55 0.9275 7.55 0.8432 7.55 0.7665 7.55 0.6968 7.55 0.6335 7.55 0.5759 7.55 0.5235 7.55 0.4759 7.55 0.4327 7.55 0.3933 7.55 0.3576 7.55 0.3251 7.55 0.2955 7.55 0.2687 7.55 0.2442 7.55 0.2220 7.55 0.2018 7.55 0.1835 7.55 0.1668 7.55 0.1517 7.55 0.1379 7.55 0.1253 7.55 0.1139 7.55 0.1036 7.55 0.0942 7.55 0.0856 7.55 0.0778 7.55 0.0707 7.55 0.0643 7.55 0.0585 7.55 0.0532

2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083 2084 2085 2086 2087 2088 2089 2090 2091 2092 2093

7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 7.55 107.55

0.0483 0.0439 0.0399 0.0363 0.0330 0.0300 0.0273 0.0248 0.0225 0.0205 0.0186 0.0169 0.0154 0.0140 0.0127 0.0116 0.0105 0.0096 0.0087 0.0079 0.0072 0.0065 0.0059 0.0054 0.0049 0.0045 0.0041 0.0037 0.0034 0.0030 0.0028 0.0025 0.0023 0.0021 0.0019 0.0017 0.0016 0.0014 0.0013 0.0012 0.0011 0.0010 0.0009 0.0008 0.0007 0.0007 0.0006 0.0078

120

100

80

60

40

20

0 1980

2000

2020

Raw Value Of Cash Flows Present Value of Cash Flows

2040

2060

2080

2100

e Of Cash Flows

Value of Cash Flows

Year

PV for 30 Year Sleeping Beauty Bond

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

$7.02 $6.53 $6.07 $5.64 $5.25 $4.88 $4.54 $4.22 $3.92 $3.65 $3.39 $3.15 $2.93 $2.73 $2.53 $2.36 $2.19 $2.04 $1.89 $1.76 $1.64 $1.52 $1.42 $1.32 $1.22 $1.14 $1.06 $0.98 $0.91 $12.11

2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083 2084 2085 2086 2087 2088 2089 2090 2091 2092 2093

PV for a Zero-Coupon 30 Year Bond

PV for a 10 Year Bond

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $100.00

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 51.94

PV for a 100 Year Bond

7.02 6.53 6.07 5.64 5.25 4.88 4.54 4.22 3.92 3.65 3.39 3.15 2.93 2.73 2.53 2.36 2.19 2.04 1.89 1.76 1.64 1.52 1.42 1.32 1.22 1.14 1.06 0.98 0.91 0.85 0.79 0.74 0.68 0.64 0.59 0.55 0.51 0.48 0.44 0.41 0.38 0.36 0.33 0.31 0.29 0.27 0.25 0.23 0.21 0.20

Mid Points PV for 30 Year Sleeping Beauty Bond PV for a Zero-Coupon 30 Year Bond PV for a 10 Year Bond PV for a 100 Year Bond

Year 2002-03 2023 2002-03 2002-03

60 50 40 30 20 10 0 1992

1994

1996

PV for 30 Year Sleepin $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00

0.18 0.17 0.16 0.15 0.14 0.13 0.12 0.11 0.10 0.10 0.09 0.08 0.08 0.07 0.07 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.07

$2.00 $0.00 1990

1995

2000

2005

PV for a Zero 120 100 80 60 40 20 0 1990 -20

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00

1995

2000

2005

2010

0.00 1980

2000

2020

PV for a 10 Year Bond

PV for a 10 Year Bond

1998

2000

2002

2004

V for 30 Year Sleeping Beauty Bond

PV for 30 Year Sleeping Beauty Bond

2010

2015

2020

2025

V for a Zero-Coupon 30 Year Bond

PV for a Zero-Coupon 30 Year Bond

2010

2015

2020

2025

PV for a 100 Year Bond

PV for a 100 Year Bond

2040

2060

2080

2100