Common use of Market Value Formula Clause in Contracts

Market Value Formula. Market Value Formula means the formula used to determine the Market Value Factor. The rates entering into the Market Value Formula, the methods employed in the computation, and any amount determined by the application of the Market Value Formula will be deemed conclusive. The Market Value Formula is based on a serial bond valuation formula for a bond which repays its original principal in installments, pays interest on the outstanding principal, and is being valued in the current interest rate environment. The Market Value Formula is: where: #1m = the weighted average of the yields of the indices listed below, where the weightings represent the percentage of the market value of the retirement segment that is invested in each of the asset categories listed below (the “assumed market yield”). For purposes of this section, the term “retirement segment” refers to the segment of the MassMutual general investment account to which the assets of this Agreement are allocated. The yield of each index is the last available published yield in the month immediately prior to the month as of which the Market Value Factor is being calculated. [The weighting of each index is determined as of the last Business Day of the second month immediately prior to the month as of which the Market Value Factor is being calculated. For example, if the Market Value Factor is being calculated as of March 15, MassMutual would determine the weightings for each index as of the last Business Day in January.] [The weighting of each index is determined as of the last Business Day of the month immediately prior to the most recent calendar quarter-end that precedes the date as of which the Market Value Factor is being calculated. For example, if the Market Value Factor is being calculated as of July 15, MassMutual would determine the weightings for each index as of the last Business Day in May.] Unless otherwise defined in this Agreement, a “Business Day” will be each day on which the New York Stock Exchange is open for business. #2 Asset Category Applicable Index Public/Private Corporates [80% Citi USBIG BBB Corporate Index, 20% Citi HYM Index] Commercial Mortgage Loans [Bank of America/Xxxxxxx CMBS Fixed Rate AAA 5-10 Yrs Index] Commercial Mortgage Backed Securities [Bank of America/Xxxxxxx CMBS Fixed Rate AAA 5-10 Yrs Index] Mortgage Backed Securities/ Collateralized Mortgage Obligations/Residential Mortgage Loans #3[Barclays U.S. MBS: Agency Fixed Rate MBS Index] Asset Backed Securities/ Floaters #3[Bank of America/Xxxxxxx ABS Credit Cards Floating Rate Index] Treasuries #3[Barclays U.S. Treasury: 5-7 Year Index] Cash #3[3 month US Dollar LIBOR] #4[Assets not listed above] #3[80% Citi USBIG BBB Corporate Index, 20% Citi HYM Index] The assumed market yield is adjusted to account for the difference between the duration of the assumed market yield and the duration of the retirement segment. In the event MassMutual determines that the Market Value Factor produced by the Market Value Formula no longer accurately represents the market value of the retirement segment, MassMutual will provide the Investor Effective Communication of replacement of one or more of the applicable indices. This change will be effective no earlier than #5[90] days following the date of the Effective Communication. k = the weighted average of the investment year interest rates being used by MassMutual for the retirement segment, where the weightings represent the distribution to the various investment years of this Agreement’s funds or the funds of the class of investment agreements to which this Agreement is assigned depending on whether the Agreement is individually rated or pool rated. Each investment year’s interest rate is net of investment expenses and is adjusted for gains and losses not included in the establishment of prior Guaranteed Interest Rates. a = the present value of an immediate annuity of $1 per year for r years with interest at the rate (m). The formula to be used to calculate this value is: r = the number of years to maturity of a serial bond, in whole and fractional years, whose duration represents the duration of the retirement segment. [

Market Value Formula. Market Value Formula means the formula used to determine the Market Value Factormarket value factor. The rates entering into the Market Value Formula, the methods employed in the computation, and any amount determined by the application of the Market Value Formula will be deemed conclusive. The Market Value Formula is based on a serial bond valuation formula for a bond which repays its original principal in installments, pays interest on the outstanding principal, and is being valued in the current interest rate environment. The Market Value Formula is: where: #1m = the weighted average of the yields of the indices listed below, where the weightings represent the percentage of the market value of the retirement segment that is invested in each of the asset categories listed below (the “assumed market yield”). For purposes of this section, the term “retirement segment” refers to the segment of the MassMutual general investment account to which the assets of this Agreement are allocated. The yield of each index is the last available published yield in the month immediately prior to the month as of which the Market Value Factor market value factor is being calculated. [The weighting of each index is determined as of the last Business Day of the second month immediately prior to the month as of which the Market Value Factor is being calculated. For example, if the Market Value Factor is being calculated as of March 15, MassMutual would determine the weightings for each index as of the last Business Day in January.] [The weighting of each index is determined as of the last Business Day of the month immediately prior to the most recent calendar quarter-end that precedes the date as of which the Market Value Factor market value factor is being calculated. For example, if the Market Value Factor market value factor is being calculated as of July 15, MassMutual would determine the weightings for each index as of the last Business Day in May.] . Unless otherwise defined in this AgreementContract, a “Business Day” will be each day on which the New York Stock Exchange is open for business. #2 Asset Category Applicable Index Public/Private Corporates [80% Citi USBIG BBB Corporate Index, 20% Citi HYM Index] Index Commercial Mortgage Loans [Bank of America/Xxxxxxx CMBS Fixed Rate AAA 5-10 Yrs Index] Index Commercial Mortgage Backed Securities [Bank of America/Xxxxxxx CMBS Fixed Rate AAA 5-10 Yrs Index] Index Mortgage Backed Securities/ Collateralized Mortgage Obligations/Residential Mortgage Loans #3[Barclays Barclays U.S. MBS: Agency Fixed Rate MBS Index] Index Obligations/Residential Mortgage Loans Asset Backed Securities/ Floaters #3[Bank Bank of America/Xxxxxxx ABS Credit Cards Floating Rate Index] Index Treasuries #3[Barclays Barclays U.S. Treasury: 5-7 Year Index] Index Cash #3[3 3 month US Dollar LIBOR] #4[Assets LIBOR Assets not listed above] #3[80above 80% Citi USBIG BBB Corporate Index, 20% Citi HYM Index] Index The assumed market yield is adjusted to account for the difference between the duration of the assumed market yield and the duration of the retirement segment. In the event MassMutual determines that the Market Value Factor market value factor produced by the Market Value Formula no longer accurately represents the market value of the retirement segment, MassMutual will provide the Investor Effective Communication of replacement of one or more of the applicable indices. This change will be effective no earlier than #5[90] 90 days following the date of the Effective Communication. k = the weighted average of the investment year interest rates being used by MassMutual for the retirement segment, where the weightings represent the distribution to the various investment years of this Agreement’s funds or the funds of the class of investment agreements to which this Agreement is assigned depending on whether the Agreement Contract is individually rated or pool rated. Each investment year’s interest rate is net of investment expenses and is adjusted for gains and losses not included in the establishment of prior Guaranteed Interest Rates. a = the present value of an immediate annuity of $1 per year for r years with interest at the rate (m). The formula to be used to calculate this value is: r = the number of years to maturity of a serial bond, in whole and fractional years, whose duration represents the duration of the retirement segment. [.