CAD Govt Bonds Canada Savings Bonds 4.71 1.3 4.27 2.75 3.71 4 3.52 1.65 3.98 2.75 Average Rate Average Rate 5.04 2.49 Fair value of Swap Fair value of Swap 5.14 5.17Exhibit 5 FAIR VALUE OF INTEREST RATE SWAP AT MARCH 31, 2002 Fair value: Fixed rate at inception 5.38% Fixed rate March 31, 2002 5.217% Difference -0.163% Present value of difference 28-Sep-02 28-Sep-03 28-Sep-04 28-Sep-05 28-Sep-06 $75,000,000 $ 75,000,000 $45,000,000 $45,000,000 $45,000,000 (122,361) (122,361) (73,417) (73,417) (73,417) 3.88% 2.93% 2.88% 2.48% 3.13% (120,055) (117,174) (68,386) (67,384) (63,909) $ (436,908) Source: Created by author.Exhibit 2 CALCULATION OF INTEREST RATE SWAP AT INCEPTION ON SEPTEMBER 28, 2001, WITH A TERM OF FIVE YEARS 1 B C D E F G 2 Floating payment: 28-Sep-02 28-Sep-03 28-Sep-04 28-Sep-05 28-Sep-06 3 Notional Principal $ 75,000,000 $ 75,000,000 $ 45,000,000 $ 45,000,000 4 Expected BA $ 45,000,000 2.90% 2.38% 2.19% 4.49% 9.64% Expected floating payment @BA+1.5% 3,300,000 2,910,000 1,660,500 2.695,500 8 Discount rate* * 5,013,000 3.63% 2.93% 2.88% 2.48% g 3.13% Present Value at each 10 date 3,184,406 2,746,686 $ 1,524,916 2.443,897 4,297,072 11 Total Present Value 14,196,977 12 13 14 Fixed Payment: 28-Sep-02 28-Sep-04 15 Notional Principal 75,000,000 28-Sep-03 28-Sep-05 28-Sep-06 $ $ 75,000,000 $ 45,000,000 $ 45,000,000 $ 16 Fixed rate of interest*** 45,000,000 5.380% 5.380% 5.380% 5.380% 5.380% 17 18 Fixed payment** 4,035,336 4.035,336 2.421,202 2,421,202 19 Discount rate** 2,421,202 3.63% 2.93% 2.88% 2.48% 3.13% 20 Present Value at each 21 date 3,893,984 3,808,867 $ 2,223,505 2,195,202 2,075,419 22 Total Present Value 14, 196,977 23 24 Difference in PV's $ Bankers' Acceptance rates from http:/www.bankofcanada.ca/en/rates/interest-look.html "5-year GIC from Bank of Canada site *Calculated using Goal Seek from Excel Tools Source: Created by author.Exhibit 4 EFFECT OF REVALUATION OF INTEREST RATE SWAP AT MARCH 31, 2002 Floating payment: 28-Sep-02 28-Sep-03 28-Sep-04 28-Sep-05 28-Sep-06 Notional Principal $75,000,000 $75,000,000 $45,000,000 $45,000,000 $45,000,000 Expected BA 2.36% 2.78% 2.27% 4.24% 8.98% Expected floating payment @BA+1.5% 2,895,000 3,210,000 1,696,500 2,583,000 4,716,000 Discount rate 3.88% 2.93% 2.88% 2.48% 3.13% Present Value at each date 2,840,420 3,073,917 1,580,252 2,370,759 4, 105,265 Total Present Value $13,970,614 Fixed Payment: 28-Sep-02 28-Sep-03 28-Sep-04 28-Sep-05 28-Sep-06 Notional Principal $75,000,000 $75,000,000 $45,000,000 $45,000,000 $45,000,000 Fixed rate of interest 5.217% 5.217% 5.217% 5.217% 5.217% Fixed payment 3,912,639 3,912,639 2,347,583 2,347,583 2,347,583 Discount rate 3.88% 2.93% 2.88% 2.48% 3.13% Present Value at each date 3,838,873 3,746,768 2,186,722 2, 154,686 2,043,565 Total Present Value $13,970,614 Difference in PV's $(0) Source: Created by author