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 Present Year Year per $100 Value

1993 0 75.50 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 21 7.55 2015 22 7.55 2016 23 7.55 2017 24 7.55 2018 25 7.55 2019 26 7.55 2020 27 7.55 2021 28 7.55 2022 29 7.55 2023 30 7.55 Page 2

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Sleeping Beauty Present Value as a Function of the Interest Rate

Calendar Relative Cash Flow Interest Present Year Year per $100 Rates Values

1993 0

2%

$339.20

1994 1 7.55

3%

$243.78

1995 2 7.55

4%

$186.99

1996 3 7.55

5%

$150.61

1997 4 7.55

6%

$125.76

1998 5 7.55

7%

$107.85

1999 6 7.55

8%

$94.38

2000 7 7.55

9%

$83.89

2001 8 7.55

10%

$75.50

2002 9 7.55

11%

$68.64

2003 10 7.55

12%

$62.92

2004 11 7.55

13%

$58.08

2005 12 7.55

14%

$53.93

2006 13 7.55

15%

$50.33

2007 14 7.55

16%

$47.19

2008 15 7.55

17%

$44.41

2009 16 7.55

18%

$41.94

2010 17 7.55

19%

$39.74

2011 18 7.55

20%

$37.75

2012 19 7.55

100%

$7.55

2013 20 7.55

500%

$1.51

2014 21 7.55

1000%

$0.76

2015 22 7.55 2016 23 7.55 2017 24 7.55 2018 25 7.55 2019 26 7.55 2020 27 7.55

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Sleeping Beauty Bonds of Different Maturity

Cash Flow per $100 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 19 7.55 2013 20 7.55 2014 21 7.55 2015 22 7.55 2016 23 7.55 2017 24 7.55 2018 25 7.55 2019 26 7.55 2020 27 7.55 2021 28 7.55 2022 29 7.55 2023 30 7.55 2024 31 7.55 2025 32 7.55 2026 33 7.55 2027 34 7.55 Present Values for 10 Year Bond Page 4

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2028 35 7.55

2029 36 7.55

2030 37 7.55

2031 38 7.55

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Present Value

Interest

Sleeping

Napping

Rates

Beauties

2%

$339.20

$149.85

3%

$243.78

$138.81

4%

$186.99

$128.79

5%

$150.61

$119.69

6%

$125.76

$111.41

7%

$107.85

$103.86

7.55%

$100.00

8%

$94.38

$96.98

9%

$83.89

$90.69

10%

$75.50

$84.95

11%

$68.64

$79.68

12%

$62.92

$74.86

13%

$58.08

$70.43

14%

$53.93

$66.36

15%

$50.33

$62.61

16%

$47.19

$59.16

17%

$44.41

$55.98

18%

$41.94

$53.04

19%

$39.74

$50.32

20%

$37.75

$47.80

80 100 120 140 160

Napping Beauties

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40 60 80

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Page 8 $0.00 $50.00 $100.00 $150.00 $200.00 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Pr

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V

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e

Interest Rate

Present Value of a 100-year and a 10-year

Bond as a Function of the Interest Rate

100-year bonds

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Sleeping Beauty Calculation of Duration

Calendar Relative

Year Year

Sleeping Beauties

10-Year Bond

30-Year Bond

Interest

7.55%

Rate Duration (in Years)

14.24

7.37

1993 0 1994 1 7.02 7.02 7.02 7.02 7.02 1995 2 6.53 13.05 6.53 13.05 6.53 1996 3 6.07 18.21 6.07 18.21 6.07 1997 4 5.64 22.57 5.64 22.57 5.64 1998 5 5.25 26.23 5.25 26.23 5.25 1999 6 4.88 29.27 4.88 29.27 4.88 2000 7 4.54 31.75 4.54 31.75 4.54 2001 8 4.22 33.74 4.22 33.74 4.22 2002 9 3.92 35.29 3.92 35.29 3.92 2003 10 3.65 36.46 51.94 519.41 3.65 2004 11 3.39 37.29 3.39 2005 12 3.15 37.83 3.15 2006 13 2.93 38.10 2.93 2007 14 2.73 38.15 2.73 2008 15 2.53 38.01 2.53 2009 16 2.36 37.70 2.36 2010 17 2.19 37.24 2.19 2011 18 2.04 36.66 2.04 2012 19 1.89 35.98 1.89 2013 20 1.76 35.22 1.76 2014 21 1.64 34.38 1.64 2015 22 1.52 33.49 1.52 2016 23 1.42 32.56 1.42 2017 24 1.32 31.59 1.32 2018 25 1.22 30.59 1.22 2019 26 1.14 29.58 1.14 2020 27 1.06 28.56 1.06 2021 28 0.98 27.54 0.98 2022 29 0.91 26.52 0.91 2023 30 0.85 25.51 12.11 2024 31 0.79 24.51 2025 32 0.74 23.53 2026 33 0.68 22.56 2027 34 0.64 21.61 2028 35 0.59 20.68 2029 36 0.55 19.78 2030 37 0.51 18.90 2031 38 0.48 18.05 Page 10

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2032 39 0.44 17.23 2033 40 0.41 16.43 2034 41 0.38 15.66 2035 42 0.36 14.91 2036 43 0.33 14.20 2037 44 0.31 13.51 2038 45 0.29 12.84 2039 46 0.27 12.21 2040 47 0.25 11.60 2041 48 0.23 11.01 2042 49 0.21 10.45 2043 50 0.20 9.92 2044 51 0.18 9.41 2045 52 0.17 8.92 2046 53 0.16 8.45 2047 54 0.15 8.01 2048 55 0.14 7.58 2049 56 0.13 7.18 2050 57 0.12 6.79 2051 58 0.11 6.43 2052 59 0.10 6.08 2053 60 0.10 5.75 2054 61 0.09 5.43 2055 62 0.08 5.13 2056 63 0.08 4.85 2057 64 0.07 4.58 2058 65 0.07 4.33 2059 66 0.06 4.09 2060 67 0.06 3.86 2061 68 0.05 3.64 2062 69 0.05 3.43 2063 70 0.05 3.24 2064 71 0.04 3.05 2065 72 0.04 2.88 2066 73 0.04 2.71 2067 74 0.03 2.56 2068 75 0.03 2.41 2069 76 0.03 2.27 2070 77 0.03 2.14 2071 78 0.03 2.02 2072 79 0.02 1.90 2073 80 0.02 1.79 2074 81 0.02 1.68 2075 82 0.02 1.58 2076 83 0.02 1.49 2077 84 0.02 1.40 2078 85 0.02 1.32 2079 86 0.01 1.24 2080 87 0.01 1.17 2081 88 0.01 1.10 2082 89 0.01 1.03 2083 90 0.01 0.97

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2084 91 0.01 0.91 2085 92 0.01 0.86 2086 93 0.01 0.81 2087 94 0.01 0.76 2088 95 0.01 0.71 2089 96 0.01 0.67 2090 97 0.01 0.63 2091 98 0.01 0.59 2092 99 0.01 0.55 2093 100 0.07 7.42 Page 12

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30-Year Bond

30-Year Zero

7.55%

12.64

30.00

7.02 0 0 13.05 0 0 18.21 0 0 22.57 0 0 26.23 0 0 29.27 0 0 31.75 0 0 33.74 0 0 35.29 0 0 36.46 0 0 37.29 0 0 37.83 0 0 38.10 0 0 38.15 0 0 38.01 0 0 37.70 0 0 37.24 0 0 36.66 0 0 35.98 0 0 35.22 0 0 34.38 0 0 33.49 0 0 32.56 0 0 31.59 0 0 30.59 0 0 29.58 0 0 28.56 0 0 27.54 0 0 26.52 0 0 363.43 100 3000

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Sleeping Beauty Sensitivity Up

Sleeping

10-Year

30-Year

Year Year

Beauty

Bond

Zero

Interest 7.55% 7.55% 7.55% 7.55% Rate Value 100.00 100.00 100.00 100.00 % Ch. In Value 11.69% 6.55% 10.70% 24.24% 1993 0 1994 1 7.02 7.02 7.02 0 1995 2 6.53 6.53 6.53 0 1996 3 6.07 6.07 6.07 0 1997 4 5.64 5.64 5.64 0 1998 5 5.25 5.25 5.25 0 1999 6 4.88 4.88 4.88 0 2000 7 4.54 4.54 4.54 0 2001 8 4.22 4.22 4.22 0 2002 9 3.92 3.92 3.92 0 2003 10 3.65 51.94 3.65 0 2004 11 3.39 3.39 0 2005 12 3.15 3.15 0 2006 13 2.93 2.93 0 2007 14 2.73 2.73 0 2008 15 2.53 2.53 0 2009 16 2.36 2.36 0 2010 17 2.19 2.19 0 2011 18 2.04 2.04 0 2012 19 1.89 1.89 0 2013 20 1.76 1.76 0 2014 21 1.64 1.64 0 2015 22 1.52 1.52 0 2016 23 1.42 1.42 0 2017 24 1.32 1.32 0 2018 25 1.22 1.22 0 2019 26 1.14 1.14 0 2020 27 1.06 1.06 0 2021 28 0.98 0.98 0 2022 29 0.91 0.91 0 2023 30 0.85 12.11 100 2024 31 0.79 2025 32 0.74 2026 33 0.68 2027 34 0.64 2028 35 0.59 2029 36 0.55 2030 37 0.51 2031 38 0.48 2032 39 0.44 Page 16

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2033 40 0.41 2034 41 0.38 2035 42 0.36 2036 43 0.33 2037 44 0.31 2038 45 0.29 2039 46 0.27 2040 47 0.25 2041 48 0.23 2042 49 0.21 2043 50 0.20 2044 51 0.18 2045 52 0.17 2046 53 0.16 2047 54 0.15 2048 55 0.14 2049 56 0.13 2050 57 0.12 2051 58 0.11 2052 59 0.10 2053 60 0.10 2054 61 0.09 2055 62 0.08 2056 63 0.08 2057 64 0.07 2058 65 0.07 2059 66 0.06 2060 67 0.06 2061 68 0.05 2062 69 0.05 2063 70 0.05 2064 71 0.04 2065 72 0.04 2066 73 0.04 2067 74 0.03 2068 75 0.03 2069 76 0.03 2070 77 0.03 2071 78 0.03 2072 79 0.02 2073 80 0.02 2074 81 0.02 2075 82 0.02 2076 83 0.02 2077 84 0.02 2078 85 0.02 2079 86 0.01 2080 87 0.01 2081 88 0.01 2082 89 0.01 2083 90 0.01 2084 91 0.01

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2085 92 0.01 2086 93 0.01 2087 94 0.01 2088 95 0.01 2089 96 0.01 2090 97 0.01 2091 98 0.01 2092 99 0.01 2093 100 0.07 Page 18

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Sleeping

10-Year

30-Year

Beauty

Bond

Zero

8.55% 8.55% 8.55% 8.55% 88.31 93.45 89.30 75.76 6.96 6.96 6.96 0 6.41 6.41 6.41 0 5.90 5.90 5.90 0 5.44 5.44 5.44 0 5.01 5.01 5.01 0 4.61 4.61 4.61 0 4.25 4.25 4.25 0 3.92 3.92 3.92 0 3.61 3.61 3.61 0 3.32 47.35 3.32 0 3.06 3.06 0 2.82 2.82 0 2.60 2.60 0 2.39 2.39 0 2.21 2.21 0 2.03 2.03 0 1.87 1.87 0 1.72 1.72 0 1.59 1.59 0 1.46 1.46 0 1.35 1.35 0 1.24 1.24 0 1.14 1.14 0 1.05 1.05 0 0.97 0.97 0 0.89 0.89 0 0.82 0.82 0 0.76 0.76 0 0.70 0.70 0 0.64 9.18 75.75609988 0.59 0.55 0.50 0.46 0.43 0.39 0.36 0.33 0.31

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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 Page 20

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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

Sleeping10-Year30-Year30-Year Sleeping

10-Year

Year Year

Beauty

Bond

Zero

Beauty

Bond

Interest

7.55% 7.55% 7.55% 7.55%

0.07

Rate Value 100.00 100.00 100.00 100.00 115.24 107.17 % Ch. In Value 15.24% 7.17% 12.99% 32.35% 1993 0 1994 1 7.02 7.02 7.02 0 7.09 7.09 1995 2 6.53 6.53 6.53 0 6.65 6.65 1996 3 6.07 6.07 6.07 0 6.24 6.24 1997 4 5.64 5.64 5.64 0 5.86 5.86 1998 5 5.25 5.25 5.25 0 5.50 5.50 1999 6 4.88 4.88 4.88 0 5.16 5.16 2000 7 4.54 4.54 4.54 0 4.84 4.84 2001 8 4.22 4.22 4.22 0 4.54 4.54 2002 9 3.92 3.92 3.92 0 4.27 4.27 2003 10 3.65 51.94 3.65 0 4.00 57.03 2004 11 3.39 3.39 0 3.76 2005 12 3.15 3.15 0 3.53 2006 13 2.93 2.93 0 3.31 2007 14 2.73 2.73 0 3.11 2008 15 2.53 2.53 0 2.92 2009 16 2.36 2.36 0 2.74 2010 17 2.19 2.19 0 2.57 2011 18 2.04 2.04 0 2.41 2012 19 1.89 1.89 0 2.26 2013 20 1.76 1.76 0 2.12 2014 21 1.64 1.64 0 1.99 2015 22 1.52 1.52 0 1.87 2016 23 1.42 1.42 0 1.75 2017 24 1.32 1.32 0 1.65 2018 25 1.22 1.22 0 1.55 2019 26 1.14 1.14 0 1.45 2020 27 1.06 1.06 0 1.36 2021 28 0.98 0.98 0 1.28 2022 29 0.91 0.91 0 1.20 2023 30 0.85 12.11 100 1.13 2024 31 0.79 1.06 2025 32 0.74 0.99 2026 33 0.68 0.93 2027 34 0.64 0.87 2028 35 0.59 0.82 2029 36 0.55 0.77 2030 37 0.51 0.72 2031 38 0.48 0.68 Page 22

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2032 39 0.44 0.64 2033 40 0.41 0.60 2034 41 0.38 0.56 2035 42 0.36 0.53 2036 43 0.33 0.49 2037 44 0.31 0.46 2038 45 0.29 0.43 2039 46 0.27 0.41 2040 47 0.25 0.38 2041 48 0.23 0.36 2042 49 0.21 0.34 2043 50 0.20 0.32 2044 51 0.18 0.30 2045 52 0.17 0.28 2046 53 0.16 0.26 2047 54 0.15 0.25 2048 55 0.14 0.23 2049 56 0.13 0.22 2050 57 0.12 0.20 2051 58 0.11 0.19 2052 59 0.10 0.18 2053 60 0.10 0.17 2054 61 0.09 0.16 2055 62 0.08 0.15 2056 63 0.08 0.14 2057 64 0.07 0.13 2058 65 0.07 0.12 2059 66 0.06 0.11 2060 67 0.06 0.11 2061 68 0.05 0.10 2062 69 0.05 0.09 2063 70 0.05 0.09 2064 71 0.04 0.08 2065 72 0.04 0.08 2066 73 0.04 0.07 2067 74 0.03 0.07 2068 75 0.03 0.06 2069 76 0.03 0.06 2070 77 0.03 0.06 2071 78 0.03 0.05 2072 79 0.02 0.05 2073 80 0.02 0.05 2074 81 0.02 0.04 2075 82 0.02 0.04 2076 83 0.02 0.04 2077 84 0.02 0.04 2078 85 0.02 0.03 2079 86 0.01 0.03 2080 87 0.01 0.03 2081 88 0.01 0.03 2082 89 0.01 0.03 2083 90 0.01 0.03

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2084 91 0.01 0.02 2085 92 0.01 0.02 2086 93 0.01 0.02 2087 94 0.01 0.02 2088 95 0.01 0.02 2089 96 0.01 0.02 2090 97 0.01 0.02 2091 98 0.01 0.02 2092 99 0.01 0.01 2093 100 0.07 0.19 Page 24

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30-Year

Bond

Zero

0.07

112.99 132.35 7.09 0.00 6.65 0.00 6.24 0.00 5.86 0.00 5.50 0.00 5.16 0.00 4.84 0.00 4.54 0.00 4.27 0.00 4.00 0.00 3.76 0.00 3.53 0.00 3.31 0.00 3.11 0.00 2.92 0.00 2.74 0.00 2.57 0.00 2.41 0.00 2.26 0.00 2.12 0.00 1.99 0.00 1.87 0.00 1.75 0.00 1.65 0.00 1.55 0.00 1.45 0.00 1.36 0.00 1.28 0.00 1.20 0.00 16.03 132.35

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Sleeping Beauty The Relation between Duration and Interest Rate Sensitivity

Sleeping 10-Year 30-Year 30-Year Beauty Bond Bond Zero

% Ch if Rate Down 1% 15.2% 7.2% 13.0% 32.4%

Duration 14.24 7.37 12.64 30.00

% Ch. If Rate Up 1% 11.7% 6.6% 10.7% 24.2%

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1994 7.55 6.8636 1995 7.55 6.2397 1996 7.55 5.6724 1997 7.55 5.1568 1998 7.55 4.6880 1999 7.55 4.2618 2000 7.55 3.8743 2001 7.55 3.5221 2002 7.55 3.2019 2003 7.55 2.9109 2004 7.55 2.6462 2005 7.55 2.4057 2006 7.55 2.1870 2007 7.55 1.9882 2008 7.55 1.8074 2009 7.55 1.6431 2010 7.55 1.4937 2011 7.55 1.3579 2012 7.55 1.2345 2013 7.55 1.1223 2014 7.55 1.0202 2015 7.55 0.9275 2016 7.55 0.8432 2017 7.55 0.7665 2018 7.55 0.6968 2019 7.55 0.6335 2020 7.55 0.5759 2021 7.55 0.5235 2022 7.55 0.4759 2023 7.55 0.4327 2024 7.55 0.3933 2025 7.55 0.3576 2026 7.55 0.3251 2027 7.55 0.2955 2028 7.55 0.2687 2029 7.55 0.2442 2030 7.55 0.2220 2031 7.55 0.2018 2032 7.55 0.1835 2033 7.55 0.1668 2034 7.55 0.1517 2035 7.55 0.1379 2036 7.55 0.1253 2037 7.55 0.1139 2038 7.55 0.1036 2039 7.55 0.0942 2040 7.55 0.0856 2041 7.55 0.0778 2042 7.55 0.0707 2043 7.55 0.0643 2044 7.55 0.0585 2045 7.55 0.0532

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2048 7.55 0.0399 2049 7.55 0.0363 2050 7.55 0.0330 2051 7.55 0.0300 2052 7.55 0.0273 2053 7.55 0.0248 2054 7.55 0.0225 2055 7.55 0.0205 2056 7.55 0.0186 2057 7.55 0.0169 2058 7.55 0.0154 2059 7.55 0.0140 2060 7.55 0.0127 2061 7.55 0.0116 2062 7.55 0.0105 2063 7.55 0.0096 2064 7.55 0.0087 2065 7.55 0.0079 2066 7.55 0.0072 2067 7.55 0.0065 2068 7.55 0.0059 2069 7.55 0.0054 2070 7.55 0.0049 2071 7.55 0.0045 2072 7.55 0.0041 2073 7.55 0.0037 2074 7.55 0.0034 2075 7.55 0.0030 2076 7.55 0.0028 2077 7.55 0.0025 2078 7.55 0.0023 2079 7.55 0.0021 2080 7.55 0.0019 2081 7.55 0.0017 2082 7.55 0.0016 2083 7.55 0.0014 2084 7.55 0.0013 2085 7.55 0.0012 2086 7.55 0.0011 2087 7.55 0.0010 2088 7.55 0.0009 2089 7.55 0.0008 2090 7.55 0.0007 2091 7.55 0.0007 2092 7.55 0.0006 2093 107.55 0.0078 ₀ 20 40 60 80 100 120 1980 2000 2020

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1993 1994 $7.02 1995 $6.53 1996 $6.07 1997 $5.64 1998 $5.25 1999 $4.88 2000 $4.54 2001 $4.22 2002 $3.92 2003 $3.65 2004 $3.39 2005 $3.15 2006 $2.93 2007 $2.73 2008 $2.53 2009 $2.36 2010 $2.19 2011 $2.04 2012 $1.89 2013 $1.76 2014 $1.64 2015 $1.52 2016 $1.42 2017 $1.32 2018 $1.22 2019 $1.14 2020 $1.06 2021 $0.98 2022 $0.91 2023 $12.11 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

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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

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$0.00 7.02 $0.00 6.53 $0.00 6.07 $0.00 5.64 $0.00 5.25 $0.00 4.88 $0.00 4.54 $0.00 4.22 $0.00 3.92 $0.00 51.94 $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

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Beauty Bond 2002-03

7.02

PV for a Zero-Coupon 30 Year

Bond 2023

6.53 PV for a 10 Year Bond 2002-03 6.07 PV for a 100 Year Bond 2002-03 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 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00

PV for 30 Year Sleeping Beauty Bond

0 10 20 30 40 50 60 1992 1994 1996

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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 $0.00 1990 1995 2000 2005 -20 0 20 40 60 80 100 120 1990 1995 2000 2005 2010

PV for a Zero

1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

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PV for 30 Year Sleeping Beauty Bond

1998 2000 2002 2004

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2010 2015 2020 2025

PV for a Zero-Coupon 30 Year Bond

PV for a 100 Year Bond

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