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111 <br />lb <br />Indian River County, Florida <br />September 1, 2000 <br />Page 2 <br />We read a copy of the Official Statement for the Defeased Bonds insofar as such obligations are <br />described with respect to principal outstanding, interest rates, and maturity dates. We assumed <br />this document to be accurate, and all debt service payments on the Defeased Bonds to be current <br />as of September 1, 2000. We compared the above information set forth in such Official <br />Statement with the related information contained in the schedules provided to us and found the <br />information to be consistent. <br />We compared the subscribed interest rates of the U.S. Treasury Securities (State and Local <br />Government Series) to be purchased and placed in escrow with the maximum allowable interest <br />rates as published in the Department of the Treasury, Bureau of the Public Debt Form PD 4262 <br />for August 25, 2000 and found the subscribed rates to be less than or equal to the maximum <br />allowable rates for each respective maturity date. <br />Based on the procedures and information set forth above, the computations presented in Exhibits <br />A through B, which indicate that the cash and securities proposed to be placed in escrow by the <br />County will produce the amounts necessary to provide for the timely payment of the proposed <br />debt payment schedule on the Defeased Bonds, are mathematically correct. <br />YIELD ON THE INVESTMENT IN ESCROWED OBLIGATIONS PURCHASED TO <br />DEFEASE THE DEFEASED BONDS <br />We verified the mathematical accuracy of the accompanying computation of the yield on the <br />investment in escrowed U.S. Treasury Securities purchased to defease the Defeased Bonds based <br />on an assumed settlement date of September 1, 2000 and a purchase price of $3,529,356.00. For <br />purposes of this calculation, yield is defined as the rate of interest which, using the assumptions <br />and procedures set forth herein, discounts the cash receipts from the escrowed securities to an <br />amount equal to the purchase price of the escrowed securities. The computations were made <br />using a 360 -day year with interest compounded semi-annually and were based on the dates the <br />funds are to be received in the escrow account, and assume that all cash balances are not <br />reinvested. <br />We read a copy of the verification report prepared by Coopers & Lybrand on December 8, 1992 <br />related to the issuance of the Refunding Revenue Bonds, Series 1992 (herein referred to as the <br />"1992 Bonds") insofar as it describes the yield on the 1992 Bonds. We assumed this document <br />to be accurate. <br />Based upon the procedures and information set forth above, the computations presented in <br />Exhibit C, which indicate that the yield on the escrowed securities purchased to defease the <br />Defeased Bonds is 5.40102% (which is less than the 5.40142% yield on the 1992 Bonds), are <br />mathematically correct. <br />verifica\Indian River County <br />