BondCalc: Refunding Premium Debt

Procedures:

1. Set global variable to ISSUER on the ShftF5 Parameter Screen.

2. Create Issuer's New Issue Yield Curve in ^Y (or ShftF4) Yield Curve
   database. Use company's senior debt for spreads over Treasuries.

3. Input bond. Input all information as found on the original prospec-
   tus. Include issuance costs near the top of the third input page.
   Enter name of the yield curve from the previous step into the
   Optional Discount Rate/Name input field at the top of the third
   input page.

4. Press F6 for report menu. Select (1) Present Value: Sale vs. Re-
   placement at the bottom of first page and Basic After Tax report in
   the middle of the second page. Run.

5. Can also use swap section from top menu to compare existing issue
   with a specific new issue. This section can also show the
   accounting treatment of the refunding.