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 9 00 8 00 7 00 6 00 5 00 4 00 3 00 2 00 1 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 Figure 1 Representative bond yields 9 00 8 00 7 00 6 00 5 00 4 00 3 00 2 00 1 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

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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  9 00  8 00  7 00  6 00  5 00  4 00  3 00  2 00  1 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 Figure 1  Representative bond yields  9 00  8 00  7 00  6 00  5 00  4 00  3 00  2 00  1 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

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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

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