University of Kentucky is enclosed, with the understanding that if we are the
successful bidder, such check is to be immediately deposited by the Board of
Trustees and credited (without interest) against the purchase price at the time
of the delivery of the Bonds.

                                       Respectfully submitted,




                                       By-



Total interest cost from                  , 1986,
  to final maturity                                                 $
Less premium or plus discount, if any, bid                           $
Net interest cost                                                    $
Net interest rate                                                                  %

           The  above  computation   of  net   interest  cost   is  submitted   for
information only and is not a part of this Bid.      The average interest rate on
the Bonds is __    %.

           Accepted this      day of              , 1986.

                                       BOARD OF TRUSTEES OF THE
                                       UNIVERSITY OF KENTUCKY



By