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40 • 4D Indian River County, Florida September 1, 2000 Page 2 We read a copy of the Official Statement for the Defeased Bonds insofar as such obligations are described with respect to principal outstanding, interest rates, and maturity dates. We assumed this document to be accurate, and all debt service payments on the Defeased Bonds to be current as of September 1, 2000. We compared the above information set Forth in such Official Statement with the related information contained in the schedules provided to us and found the information to be consistent. We compared the subscribed interest rates of the U.S. Treasury Securities (State and Local Government Series) to be purchased and placed in escrow with the maximum allowable interest rates as published in the Department of the Treasury Bureau of the Public Debt Form PD 4262 for August 25, 2000 and found the subscribed rates to be less than or equal to the maximum allowable rates for each respective maturity date. Based on the procedures and information set forth above, the computations presented in Exhibits A through B, which indicate that the cash and securities proposed to be placed in escrow by the County will produce the amounts necessary to provide for the timely payment of the proposed debt payment schedule on the Defeased Bonds, are mathematically correct. YIELD ON THE INVESTMENT IN ESCROWED OBLIGATIONS PURCHASED T© DEFEASE THE DEFEASED BONDS We verified the mathematical accuracy of the accompanying computation of the yield on the investment in escrowed U.S. Treasury Securities purchased to defease the Defeased Bonds based on an assumed settlement date of September 1, 2006 and a purchase price of $3,529,356.00. For purposes of this calculation, yield is defined as the rate of interest which, using the assumptions and procedures set forth herein, discounts the cash receipts from the escrowed securities to an amount equal to the purchase price of the escrowed securities. The computations were made using a 360 -day year with interest compounded semi-annually and were based on the dates the funds are to be received in the escrow account, and assume that all cash balances are not reinvested. We read a copy of the verification report prepared by Coopers & Lybrand on December S, 1992 related to the issuance of the Refunding Revenue 'Bonds, Series 1992 (herein referred to as the "1992 Bonds") insofar as it describes the yield on the 1992 Bonds. We assumed this document to be accurate. Based upon the procedures and information set forth above, the computations presented in Exhibit C, which indicate that the yield on the escrowed securities purchased to defease the Defeased Bonds is 5.40102% (which is less than the 5.40142% yield on the 1992 Bonds), are mathematically correct. rrnricaNrodim River Cmwy