APPENDIX P. DISTRIBUTIONS USED FOR DISCOUNT RATES

TABLE OF CONTENTS

P.1 DISTRIBUTION OF MORTGAGE INTEREST RATES .................... P.1-1

P.2 DISTRIBUTION OF RATES FOR TYPES OF DEBT AND EQUITY USED TO

FINANCE REPLACEMENT FURNACES ............................... P.1-2

P.3 DISTRIBUTION OF RATES FOR TYPES OF EQUITY USED TO FINANCE

REPLACEMENT FURNACES ......................................... P.1-5

LIST OF FIGURES

Figure P.1.1 Distribution of New Home Mortgage Interest Rates ................... P.1-1

Figure P.2.1 Distribution of Home Equity Loan Interest Rates ..................... P.1-2

Figure P.2.2 Distribution of Credit Card Interest Rates ........................... P.1-3

Figure P.2.3 Distribution of Installment Loan Interest Rates ....................... P.1-3

Figure P.2.4 Distribution of Other Residence Loan Interest Rates .................. P.1-4

Figure P.2.5 Distribution of Other Lines of Credit Loan Interest Rates .............. P.1-4

Figure P.3.1 Distribution of Annual Rate of Return on CD's ....................... P.1-5

Figure P.3.2 Distribution of Annual Rate of Return on Savings Bonds ............... P.1-6

Figure P.3.3 Distribution of Annual Rate of Return on Corporate AAA Bonds ........ P.1-6

Figure P.3.4 Distribution of Annual Rate of Return on Savings Accounts ............ P.1-7

Figure P.3.5 Distribution of Annual Rate of Return on S&P 500 ................... P.1-7

Figure P.3.6 Distribution of Annual Rate of Return on Mutual Funds ............... P.1-8

 EE-RM/STD-01-350 COMMENT 164

APPENDIX P. DISTRIBUTIONS USED FOR DISCOUNT RATES 

TABLE OF CONTENTS 

P.1 DISTRIBUTION OF MORTGAGE INTEREST RATES .................... P.l-l 

P.2 DISTRIBUTION OF RATES FOR TYPES OF DEBT AND EQUITY USED TO 

FINANCE REPLACEMENT FURNACES .......... .... ................. P.1-2 

P.3 DISTRIBUTION OF RATES FOR TYPES OF EQUITY USED TO FINANCE 

REPLACEMENT FURNACES ........ . .................. ... ..... . ..... P.l-S 

Figure P.1.l 

Figure P.2.l 

Figure P.2.2 

Figure P.2.3 

Figure P.2.4 

Figure P.2.S 

Figure P.3.l 

Figure P.3.2 

Figure P.3.3 

Figure P.3.4 

Figure P.3.S 

Figure P.3.6 

LIST OF FIGURES 

Distribution of New Home Mortgage Interest Rates ....... .. .......... P.l-l 

Distribution of Home Equity Loan Interest Rates ....... .. ............ P.1-2 

Distribution of Credit Card Interest Rates ........................... P.1-3 

Distribution of Installment Loan Interest Rates .......... .. ....... .... P.1-3 

Distribution of Other Residence Loan Interest Rates ... .... .... .. . ... . P .1-4 

Distribution of Other Lines of Credit Loan Interest Rates .............. P.1-4 

Distribution of Annual Rate of Return on CD's ....................... P.l-S 

Distribution of Annual Rate of Return on Savings Bonds ... . . . ......... P.1-6 

Distribution of Annual Rate of Return on Corporate AAA Bonds ........ P .1-6 

Distribution of Annual Rate of Return on Savings Accounts ............ P.1-7 

Distribution of Annual Rate of Return on S&P SOO ................... P.1-7 

Distribution of Annual Rate of Return on Mutual Funds ............... P.1-8 

P-i 
APPENDIX P. DISTRIBUTIONS USED FOR DISCOUNT RATES

DOE derived discount rates for the LCC analysis using data on interest or return rates for

various types of debt and equity. To account for variation among households in rates for each of

the types, DOE sampled a rate for each household from a distribution of rates for each debt and

equity type. This appendix describes the distributions used.

P.1 DISTRIBUTION OF MORTGAGE INTEREST RATES

Figure P.1.1 shows the distribution of real interest rates for new home mortgages.

The data source DOE used for mortgage interest rates is the Federal Reserve Board 's Survey of

Consumer Finances (SCF) in 1989, 1992, 1995 , 1998, 2001 , and 2004.' Using the appropriate

SCF data for each year, DOE adjusted the nominal mortgage interest rate for each relevant

household in the SCF for mortgage tax deduction and inflation . In cases where the effective

interest rate is equal to or below the inflation rate (resulting in a negative real interest rate), DOE

set the real effective interest rate to zero.

Figure P.1.1 Distribution of New Home Mortgage Interest Rates

P-1

 EE-RM/STD-01-350 COMMENT 164

APPENDIX P. DISTRIBUTIONS USED FOR DISCOUNT RATES 

DOE derived discount rates for the LCC analysis using data on interest or return rates for 

various types of debt and equity. To account for variation among households in rates for each of 

the types, DOE sampled a rate for each household from a distribution of rates for each debt and 

equity type. This appendix describes the distributions used. 

P.l DISTRffiUTION OF MORTGAGE INTEREST RATES 

Figure P.1.1 shows the distribution of real interest rates for new home mortgages. 

The data source DOE used for mortgage interest rates is the Federal Reserve Board's Survey of 

Consumer Finances (SCF) in 1989, 1992, 1995, 1998, 2001 , and 2004. 1 Using the appropriate 

SCF data for each year, DOE adjusted the nominal mortgage interest rate for each relevant 

household in the SCF for mortgage tax deduction and inflation. In cases where the effective 

interest rate is equal to or below the inflation rate (resulting in a negative real interest rate), DOE 

set the real effective interest rate to zero. 

3O% r--n- 25% ~--- - - ~ 

IPI 

20% ,In: 

It 

~ :a ! 15% ~ 1-

e 1111: D.. 

I'I~ 

10% 1111 1-- II~ -

~I: ~II 

5% Il f-iil ~ 

l~ II 

I, 

~ III ~ ~., 

1)1. Ir-l ....,. 0% , =---.- , i i , 

\. \. \. . ~\. . ~\. \. . . ~\. \. ~\. a\. ~\a a\. 1\a 1:)- 'v ",. n,' b< - ,,- <0- ,,- '0' C!> ' "I:)' ,," -

""" 

n,'? ~- <o'!l ",n,' " " Real Interest Rate 

Figure P.1.l Distribution of New Home Mortgage Interest Rates 

P-l 
P.2 DISTRIBUTION OF RATES FOR TYPES OF DEBT AND EQUITY USED TO

FINANCE REPLACEMENT FURNACES

Figures P.2.1 through P.2.5 show the distribution of real interest rates for different types

of debt used to finance replacement furnaces. The data source for the interest rates for home

equity loans, credit cards, installment loans, other residence loans, and other lines of credit is the

Federal Reserve Board 's SCF in 1989, 1992, 1995, 1998, 2001, and 2004 .' DOE adjusted the

nominal rates to real rates using the annual inflation rate in each year. For home equity loans,

DOE calculated effective interest rates in a similar manner as for mortgage rates, since interest

on such loans is tax deductible.

Figure P.2.1 Distribution of Home Equity Loan Interest Rates

 EE-RM/STD-01-350 COMMENT 164

P.2 DISTRIBUTION OF RATES FOR TYPES OF DEBT AND EQUITY USED TO 

FINANCE REPLACEMENT FURNACES 

Figures P.2.1 through P.2.5 show the distribution of real interest rates for different types 

of debt used to finance replacement furnaces. The data source for the interest rates for home 

equity loans, credit cards, installment loans, other residence loans, and other lines of credit is the 

Federal Reserve Board's SCF in 1989, 1992, 1995, 1998, 2001 , and 2004. 1 DOE adjusted the 

nominal rates to real rates using the annual inflation rate in each year. For home equity loans, 

DOE calculated effective interest rates in a similar manner as for mortgage rates, since interest 

on such loans is tax deductible. 

25% _ .. -- - - .. --- -

, 20% 

iT"" i', 

15% I-

~ Iii I" 

:0 

., 1'1 .c 

e 

a.. II 

10% '----/1' - r---- - ", -

I' 

5% r-- - PM 

0% ~ ~ I!lI El C=i """ -r- , , , , = , , 

0'0 ';;'0 ,;;'0 ';;'0 ';;'0 ,o ,o ';;'0 ';;'0 ';;'0 ';;'0 ,o of,o ~,o of,o ,o ~,o ';;'0 of,o t::) ~ 'v '),- b.- 10 ' "'- '0- '1l- "t::)- ,,'" ,,'),- ,,~ "b.- ,,~ ~ , ~ -

Real Interest Rate 

Figure P.2.1 Distribution of Home Equity Loan Interest Rates 

P-2 
h h 40D 0^° ro^° \° p°\° 3\° .\° p°\° 4.\° 6\° ro\° j\° P\° oP\° p. ^• ^. ^^• p. ^ 14i• ^• ^p. ^^• ^^• ^^• ^^• ^y. ^6 ^^• ^g• ^p. lp• ^^• ^^. ^^• ^p• ^y. gyp. gyp.

Real Interest Rate

Figure P.2.2 Distribution of Credit Card Interest Rates

35%

30%

25%

10%

5%

t, rod\° 0c\° OrO\° fi`^\° `t'

Real Interest Rate

Figure P.2.3 Distribution of Installment Loan Interest Rates

P-3

 EE-RM/STD-01-350 COMMENT 164

.. --.. ~- --. --. ._--_. __ . __ . ------ - .- . .. . __ .. . -

10% 

; 

8% L 

__ 6% - - - - - ----- -

~ :c 

co - ..Q 

e - 11. 

4% '--._-- - 1- - - - -

2% - - 1- - - I- I- -

0% ~ n In [] "". A 

*~~***~~~~~**~~~~~~*~~*~~**~ ~~~~~ ~~ ~~~~~~ ~~~'~ ~~~~~~ 

Real Interest Rate 

Figure P.2.2 Distribution of Credit Card Interest Rates 

35%1 

~::: r. __ --_-- - ------------------- ----------------------

:c 

co 

..Q 

o 

Ii. 15% 

10% 

5% J 

<Q\o 0\0 , ~'i;> </5\0 

'0' 

</5\0 ~I:l ' 

<Q\o ~",' 

a=r-r-lIIjI j & j--

~\o 

~~ ' 

~\o ~~. 

<Q\o ~'O . <Q\o 

. 

~\o ",,,,. </5\0 

. 

</5\0 ~. 

Real Interest Rate 

Figure P .2.3 Distribution of Installment Loan Interest Rates 

P-3 

~\o .\. ~\o 

~. ~'i;> ~. ~ 
20%

15%

5%

0% 11 -M, ®I Im-I -m- -^^ i

Real Interest Rate

Figure P.2.4 Distribution of Other Residence Loan Interest Rates

14%

12%

10%

4%

2%

0%

^^o ^^o y^o ^^0 600 6^0 ^o^o ^^ 6^0 ^^o y^o 6^0 ^^o ^^o ^o^o ^^o Do^o Do^o ^o^o ^^o ^o^o ^^o ^o^o y^o

p. ^• y. g. ^. ^• 6. ^• ^• ^• ^p. ^^. ^^L• ^^• ^R• ^^• ^6. ^1. ^^' ^^' gyp. y^' yL' ^3'

Real Interest Rate

Figure P.2.5 Distribution of Other Lines of Credit Loan Interest Rates

P-4

 EE-RM/STD-01-350 COMMENT 164

.--- ---~-- ---------- -- .. _- .- --------_. ~~--~- -- ~--- .. . -

20%1 

15% 1--------- 1-- - ...-

~ :s 

co 10% I- I-II, 

I t-- ..Q 

e 

III, II. 

I , I, 

r- r- II It 

5% ~ - ;!\ - - ' - I, I., , ......, I.' I' , 

EJ ,'I, 

0% I',' ~ c:I F."'I r= --I;:;;;a , , I 

0\0 ~\o ~\o ~\o ~\o \o ~\o ~\o 0\0 0\0 rt;\o 0\0 0\0 0\0 \o rt;\o ~\o C)'Y ". .... ~. . . 10' '\ . 'Or,;. C!>~ "C), "r,;. "",r,;. '? ,,~ . ,,10' . " " 

Real Interest Rate 

Figure P.2.4 Distribution of Other Residence Loan Interest Rates 

14% 

I 12% 

I 10% - - - '0-

I ~ 8% - :s 

co 

..Q 

2 m II. 6% - -- - I- -

4% 1- - - I- I- - - 1- - - -

2% - 1- - - 1- --

0% 

C)~***~~~~~**~**~~~~*~~~~* , " . .... ~. \>< . . 10 ' '\. '0' C!> ' "C), "". ".... ,, . ~. ~. ,,10' . ,,'0' "C!> ' ~ . ... ". ....... 0/' 

Real Interest Rate 

Figure P .2.5 Distribution of Other Lines of Credit Loan Interest Rates 

P-4 
P.3 DISTRIBUTION OF RATES FOR TYPES OF EQUITY USED TO FINANCE

REPLACEMENT FURNACES

Figures P.3.1 through P.3.6 show the distribution of real interest rates for different types

of equity used to finance replacement furnaces. Data for equity classes are not available from

the Federal Reserve Board's SCF, so the Department derived data for these classes from

national-level historical data. The interest rates associated with certificates of deposit (CDs),2

savings bonds,' and bonds (AAA corporate bonds)' are from Federal Reserve Board time-series

data covering 1977-2006. DOE assumed rates on checking accounts to be zero. Rates on

savings and money market accounts are from Cost of Savings Index data covering 1984-2006.5

The rates for stocks are the annual returns on the Standard and Poor's (S&P) 500 in the

1977-2006 period.' The mutual fund rates are a weighted average of the stock rates (two-thirds

weight) and the bond rates (one-third weight) in each year of the 1977-2006 period. DOE

adjusted the nominal rates to real rates using the annual inflation rate in each year.

8% -

6%

d

ii

4%

d

2%

-

0%

00 0) N M V (n (0 N- 00 0) o N M t UL) (C 1, W O) 0 N 1L) (0 N- n ao W W W W W W W W M 0 ) 0) a) a) 0) 0) M M M o 0 0 0 0 0) 0) 0) 0) Q) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) rn rn rn rn rn rn rn rn o 0 0 0 0

r r r r r r r r r r r r r r r r r r r r r r N N N N N

-2%

Year

Figure P.3.1 Distribution of Annual Rate of Return on CD's

 EE-RM/STD-01-350 COMMENT 164

P.3 DISTRIBUTION OF RATES FOR TYPES OF EQUITY USED TO FINANCE 

REPLACEMENT FURNACES 

Figures P.3.1 through P.3.6 show the distribution of real interest rates for different types 

of equity used to finance replacement furnaces. Data for equity classes are not available from 

the Federal Reserve Board's SCF, so the Department derived data for these classes from 

national-level historical data. The interest rates associated with certificates of deposit (CDs),2 

savings bonds,3 and bonds (AAA corporate bonds)4 are from Federal Reserve Board time-series 

data covering 1977-2006. DOE assumed rates on checking accounts to be zero. Rates on 

savings and money market accounts are from Cost of Savings Index data covering 1984-2006.5 

The rates for stocks are the annual returns on the Standard and Poor's (S&P) 500 in the 

1977-2006 period.6 The mutual fund rates are a weighted average of the stock rates (two-thirds 

weight) and the bond rates (one-third weight) in each year of the 1977- 2006 period. DOE 

adjusted the nominal rates to real rates using the annual inflation rate in each year. 

8% 

6% -- -

E 

:::I 

li 

It: 

'0 4% ~- - ---- ~ It: 

iii 

:::I 

C 

c 

« 2% - - - - - - -- - - - - -

n R (11 ~ ~ .Jill,... 

~ ~ '" j ;;; N '" '<t I!) CD .... co '" 0 .... N '" '<t I!) CD .... co '" 0 .... 

~' 1.- I!) CD .... co co co co co co co co '" '" '" '" '" '" '" '" '" '" 0 0 0 0 

'" '" '" '" '" '" '" '" '" '" '" ~ '" '" '" ~ '" ~ '" '" '" 0 0 0 0 ........ .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... N N N N 

0% 

-2% 

Year 

Figure P.3.1 Distribution of Annual Rate of Return on CD's 

P-5 
Annual Rate of Return

a o 0 0 0 0

N O N A 0) co

1977

1978 ii^

1981 ffiffi^

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006 [}gyp

Annual Rate of Return

N A 0)

0 0 0

1977 ri

1978 r ,---MM L

1981

1982

1983

1984

1985

1986

1987

1988 -

1989

1990

1991 go

1992 pm

1993 . -

1994

1995 i

1996

1997

1998

1999

2000 t

2001

2002

2003 p

2004

2005 ,

2006

I

 EE-RM/STD-01-350 COMMENT 164

'"d 

I 

0\ 

.... 

~ 

IJQ 

= ., 

tD 

~ 

W 

W 

t:;; 

.... 

[IJ 

.... 

., 

.... 

C" 

= 

~ Q 

Q = 

..... 

> 

= 

= = 

e:.. 

:::c 

~ 

.... 

tD I -< 

Q '" ..... e: 

:::c 

tD 

.... 

., = 

= Q 

= r:l 

Q 

., 

"C 

Q 

., 

~ 

.... 

tD 

> 

~ 

= Q 

~ = 

[IJ 

'" '$. o 

'$. 

~ 1978 

k 1982 II -I 

1983 r 

1984 Ii -I 

1985 -r' 

~::~ j:[ 

~::: I: -I 

1990 lie -I 

1991 II 

1992 'Ii> __ 

1993 

1994 

1995 t¥* 

1996 fi-. -l 

1997 I -I 

1998 _I' 

1999 _I' 

2000 UL 

2001 -I 

::

-

1~ I 

2005 "= 

-I 

2006 JI, oc>-

Annual Rate of Return 

'$. '" 

~ 

I 

§""""5"'#1 

II I = iil 

'I 

..,. 

~ o 

3"'" 

:~ - II I 

~ 

! 

I 

fll 

II 

t 

-9 1 

'4 

1 [' 

.ij 

I 

0> 

o ~ 

I 

----a ' 

T

9

: 

CX> 

'$. 

=i! 

, 

.... 

~ 

IJQ 

'" = ., '$. tD 

~ 

W 

N 

t:;; 

.... 

[IJ 

.... 

::! • 

C" 

= .... .... 

Q 

Q = 

..... 

> 

= 

= = 

e:.. 

:::c 

a 

tD 

Q :- ..... e: 

:::c 

tD 

.... 

., = 

= Q 

= 00 

~ 

~. 

IJQ = [IJ 

= Q 

= ~ 

~ 

o 

'$. 

1977 ~ 

1978 

Annual Rate of Return 

~ o '" ..,. 

'$. 

1981 1 9 1 

0> 

~ o 

I 

-I 

1982 _1;-11 

1983 ..:: ci l - I 

1984 " 

1985 

-I I __ ~~~~ 

1986 r l 

1987 t --=-v==; 

1988 ~ • 91 

1989 1!1t=~==~~ 

1990 l b tI 

1991 1+_ . I 

~::: f -l I 

1994 IL 

1995 - ft tIl 

1996 1 -i! I -I 

1997 l£:::::~~==?~~=~ -F J 1998 Ir-=--.= ! - J • 

1999 r. E5?' ! 

2000 -,. .. -r 

2001 Jri:=:::==~::J 

2002 re=-== 

2003 1!:1 "'=~:::::::::::::::::rJ 

2004 " _ II 

-r 2005 J 

[il 

2006 .. ~!==~~ 

CX> 

'$. 
8%

6%

4%

2%

0%

-2%

Year

L1 L

, 9

O O O I I

CO

O O O v O

N N N N N N

Figure P.3.4 Distribution of Annual Rate of Return on Savings Accounts

40%

30% - -

20% - - -

10%

i

v

,

CO 0) 0 O N- DO 0) N [['

')

Lo (0 E+ cc, 0)

O] a) 61 a) m m

Y-- [~ m Cr m rn W rn rn 00

l0 CO

i 1 U-O O O O

^ ^ - •- - _ _

0

N N N N

-10%

-20% - -

-30%

Year

Figure P.3.5 Distribution of Annual Rate of Return on S&P 500

u I_l

V LO CO N- Co 0) O N M e} u) (O h o0 O) O

CO Co Co CO Co Co 0) 0) 0) O) 0) 0) 0) 0) 0) 0) O

0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) O

^ r ^ ^ ^ r r r r r r r r r r r N

P-7

 EE-RM/STD-01-350 COMMENT 164

-----------------------------------

8% 

6% 

c '" ... 

Gi " 

II:: 

.... 4% 0 ~ 

S 

co 

II:: 

c;; F 

" c 

c 

« 2% 

0% 

-2% ~------------------------------------

Year 

Figure P.3.4 Distribution of Annual Rate of Return on Savings Accounts 

20% 

E 

... 

~ 10% - ----

0% ('t) .q- LO co 

:5 :5 :5 :5 N N N N 

-10% - ------l II II--------------------------1 II ~- r. ------

-20% ------- - - - -------.. -

~O%~-------------------------------------

Year 

Figure P.3.S Distribution of Annual Rate of Return on S&P SOO 

P-7 
Annual Rate of Return

U1 O 01 O cn O 

0 0 0 0 0 0 

1978 9

1979

1980 O

1982

1983

1984

1985

1986

1987

1988 1

1989

1991 [

1992 l

1993

1994 mil

1995

1996

1997

1998

1999

I- I Yfr'r-I

2003 iI

2004

2005

2006 =.1

1

- 1- 1- - --1 

I , ,lD., , 

'" '" CD 0 0 0 0 0 0 0 0 '" '" '" '" -5% 

-10% +------

-15% 

Year 

Figure P.3.6 Distribution of Annual Rate of Return on Mutual Funds 

P-8 
REFERENCES

1. The Federal Reserve Board, Survey of Consumer Finances (SCF), 1989-2004. (Last

accessed December 10, 2006.)

<http://www. federalreserve. gov/pubs/oss/oss2/scfindex.html>

2. The Federal Reserve Board, Federal Reserve Statistical Release, Selected Interest Rates.

Instruments: CDs (secondary market). Maturity: 6-month. Frequency: Annual.

Description: Average rate on 6-month negotiable certificates of deposit (secondary

market), quoted on an investment basis., 2007.

<http://www.bog.frb.fed.us/releases/H 15/data.htm>

3. The Federal Reserve Board, Federal Reserve Statistical Release, Selected Interest Rates.

Instruments: State and local bonds. Maturity: 20 year. Frequency: Monthly.

Description: Bond buyer go 20-bond municipal bond index., 2007.

<http://www.bog.frb.fed.us/releases/H 1 5/data.htm>

4. The Federal Reserve Board, Federal Reserve Statistical Release, Selected Interest Rates.

Instruments: Corporate bonds/Moody's Seasoned AAA. Maturity: 20 year. Frequency:

Annual. Description: Moody's yield on seasoned corporate bonds-all industries, AAA.,

2007. <http://www.bog.frb.fed.us/releases4l l5/data.htm>

5. Golden West Financial Corporation (GDW), Cost of Savings Index, 2007. (Last accessed

February 10, 2007.) <http://mortgage-x.com/general/indexes/default.asp>

6. Damodaran, A., Damodaran Online: The Data Page, 2007. Stem School of Business at

New York University. (Last accessed February 10, 2007.)

<http://pages.stem.nyu.edu/-adamodar/>

 EE-RM/STD-01-350 COMMENT 164

REFERENCES 

1. The Federal Reserve Board, Survey of Consumer Finances (SCF), 1989-2004. (Last 

accessed December 10,2006.) 

<http://www. federalreserve. gov /pubs/ oss/ oss2/scfindex.html> 

2. The Federal Reserve Board, Federal Reserve Statistical Release, Selected Interest Rates. 

Instruments: CDs (secondary market). Maturity: 6-month. Frequency: Annual. 

Description: Average rate on 6-month negotiable certificates of deposit (secondary 

market), quoted on an investment basis., 2007. 

<http://www.bog.frb.fed.us/releases/H15/data.htm> 

3. The Federal Reserve Board, Federal Reserve Statistical Release, Selected Interest Rates. 

Instruments: State and local bonds. Maturity: 20-year. Frequency : Monthly. 

Description: Bond buyer go 20-bond municipal bond index., 2007. 

<http://www.bog.frb.fed.us/releases/H15/data.htm> 

4. The Federal Reserve Board, Federal Reserve Statistical Release, Selected Interest Rates. 

Instruments: Corporate bonds/Moody's Seasoned AAA. Maturity: 20-year. Frequency: 

Annual. Description: Moody's yield on seasoned corporate bonds-all industries, AAA., 

2007. <http://www.bog.frb.fed.us/releasesIH15/data.htm> 

5. Golden West Financial Corporation (GDW), Cost of Savings Index, 2007. (Last accessed 

February 10, 2007.) <http://mortgage-x. com! generaVindexes/ default. asp> 

6. Damodaran, A., Damodaran Online: The Data Page, 2007. Stem School of Business at 

New York University. (Last accessed February 10,2007.) 

<http://pages.stem.nyu.edu/~adamodar/> 

P-9