Page 150

Range of Yield Curve Scales

Market Close: 06/24/04

DELPHIS HANOVER CORPORATION Copyright (C) 1963-2004 * All Rights Reserved. INDEX

100 Aaa

98

96 Aa

94

92 A

90

88 Baa

86

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2034

1.57 2.10 2.55 2.92 3.21 3.43 3.63 3.83 3.97 4.08 4.20 4.31 4.41 4.49 4.56 4.64 4.71 4.79 4.85 4.92 4.98 5.02 5.04 5.05 5.06 5.10

1.64 2.18 2.63 3.00 3.29 3.51 3.71 3.91 4.05 4.16 4.28 4.39 4.49 4.57 4.64 4.73 4.79 4.87 4.93 5.00 5.06 5.10 5.12 5.13 5.14 5.18

1.73 2.27 2.72 3.09 3.38 3.59 3.80 4.00 4.15 4.26 4.37 4.48 4.58 4.67 4.74 4.82 4.88 4.96 5.03 5.10 5.15 5.19 5.21 5.22 5.23 5.28

1.83 2.37 2.82 3.20 3.50 3.71 3.93 4.14 4.28 4.38 4.49 4.60 4.70 4.79 4.86 4.95 5.01 5.08 5.15 5.22 5.29 5.33 5.35 5.35 5.36 5.41

1.95 2.51 2.93 3.30 3.62 3.83 4.06 4.27 4.41 4.51 4.63 4.74 4.83 4.92 4.99 5.06 5.13 5.20 5.28 5.34 5.40 5.45 5.48 5.48 5.49 5.54

2.08 2.67 3.07 3.44 3.77 3.99 4.20 4.42 4.56 4.66 4.78 4.89 4.99 5.08 5.15 5.21 5.28 5.35 5.42 5.48 5.54 5.61 5.64 5.64 5.65 5.69

2.26 2.82 3.22 3.58 3.91 4.14 4.35 4.57 4.71 4.81 4.93 5.04 5.14 5.23 5.30 5.36 5.43 5.50 5.57 5.63 5.68 5.75 5.78 5.78 5.79 5.82

2.41 2.97 3.37 3.73 4.06 4.29 4.50 4.72 4.86 4.96 5.09 5.20 5.28 5.37 5.44 5.51 5.58 5.65 5.72 5.78 5.83 5.90 5.94 5.94 5.95 5.98

2039

5.14

5.22

5.32

5.45

5.58

5.74

5.86

6.02

2044

5.18

5.26

5.36

5.49

5.62

5.78

5.91

6.07

High grades improved by about .02. Secondary market activity was moderate; new issue pricing firm to strong. Dollar bonds closed up 1/4 to 3/8. The market opened plus 1/8; was up 3/8 to 1/2 at Noon EDT and gave back 1/8 in the afternoon.

On The Run Treasury Issues Maturity

Coupon

Yield

Aaa/100

Aaa/Trs Ratio

06/30/06 05/15/07 06/15/09 02/15/11 05/15/14 02/15/31

2 3/4 3 1/8 4.000 5.000 4 3/4 5 3/8

2.754 3.164 3.843 4.470 4.648 5.335

2.107 2.501 3.203 3.558 4.068 5.073

76.5% 79.0% 83.3% 79.6% 87.5% 95.1%

High

Low

High

Low

Ratio

Ratio

Date

Date

100.2%

65.1%

07/11/03

12/01/03

94.8%

63.9%

07/11/03

12/01/03

91.4%

70.0%

06/25/03

12/01/03

93.9%

73.2%

06/25/03

01/02/04

94.5%

81.3%

06/25/03

01/02/04

99.9%

91.0%

06/25/03

01/02/04

Copyright (C) 1963-2004 * DELPHIS HANOVER CORPORATION * All Rights Reserved.

BAC2 Recomendations Final 04062010