2. Refer to Figure 1 & 2, you can clearly see a marked difference in the long-term bond rates implied by the representative long-term bond for the 2009 and 2010 calculations. Please provide an explanation for the changes in the credit spread over this period. Figure 1. Representative bond yields. 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 1-Year -10-Year +30-Year(1) *Moody's Aaa **Moody's Baa Figure 2. Baa credit spread over 10-year rate. 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 Baa Credit Spread Over 10-Year 2. Refer to Figure 1 & 2, you can clearly see a marked difference in the long-term bond rates implied by the representative long-term bond for the 2009 and 2010 calculations. Please provide an explanation for the changes in the credit spread over this period. Figure 1. Representative bond yields. 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 1-Year -10-Year +30-Year(1) *Moody's Aaa **Moody's Baa Figure 2. Baa credit spread over 10-year rate. 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 Baa Credit Spread Over 10-Year