Filed Pursuant to Rule 433
Registration No. 333-146960
October 23, 2008
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORPORATION
COLLATERAL TRUST BOND TERM SHEET
| Issuer: | National Rural Utilities Cooperative Finance Corporation |
| Ratings: | A1 (Stable) by Moody’s Investors Service / A+ (Positive) by Standard & Poor’s Ratings Services / A+ (Stable) by Fitch Ratings |
| Principal Amount: | $1,000,000,000 |
| Security Type: | Collateral Trust Bonds |
| Legal Format: | SEC Registered |
| Pricing Date: | October 23, 2008 |
| Settlement Date: | T+ 5; October 30, 2008 |
| Maturity Date: | November 1, 2018 |
| Coupon: | 10.375% |
| Price to Public: | 99.237% of face amount |
| Benchmark Treasury: | 4.000% due August 15, 2018 |
| Benchmark Treasury Price and Yield: | 102-14+ / 3.699% |
| Spread to Benchmark Treasury: | 680.1 basis points |
| Yield to Maturity: | 10.500% |
| Interest Payment Dates: | Semi-annually on May 1 and November 1, commencing May 1, 2009 |
| Make-Whole Call | At any time at the greater of a price of 100% or at a discount rate of Treasury plus 50 basis points |
| Denominations: | $2,000 x $1,000 |
| CUSIP: | 637432 LR4 |
Joint Book-Running Managers: Co-Managers: | Deutsche Bank Securities Inc. J.P. Morgan Securities Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated Greenwich Capital Markets, Inc. KeyBanc Capital Markets, Inc. Lazard Capital Markets LLC Mizuho Securities USA Inc. SunTrust Robinson Humphrey, Inc. U.S. Bancorp Investments, Inc. |
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for this offering. Before you invest, you should read the prospectus for this offering in that registration statement, and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by searching the SEC online database (EDGAR®) at www.sec.gov. Alternatively, you may obtain a copy of the prospectus from Deutsche Bank Securities Inc. by calling toll-free at 1-800-503-4611, J.P. Morgan Securities Inc. collect at 1-212-834-4533 , Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-866-500-5408 or Greenwich Capital Markets, Inc. by calling toll-free at
1-866-884-2071.