Interest Rate Scenario
Definition of "Interest rate scenario"
Set of yield curves in which an interest rate is specified for various maturities such as monthly, quarterly, or annually. The basis of the interest rate can be corporate bond rates, United States Treasury Issues, Commercial Mortgage Rate, or other fixed interest rate instruments. Since the assets and liabilities of pension plans and insurance companies are interest-rate sensitive, it is important to be aware of possible future interest rate movements.
Popular Insurance Terms
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Probability of loss upon which a basic premium rate is calculated. ...
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Method of calculating the primary insurance amount (PIA) for Social Security benefits. Employees' covered monthly earnings are adjusted to reflect changes in the national average annual ...
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