The Economic Scenario development area is the place where Scenario File definitions are set up.
Currencies
One or more currencies can be specified for use within the model. Each currency will be defined to include a fixed yield curve and each of the variable rates that are set up.
Fixed Yield Curve
The yield curve points allow customization of which points on a fixed yield curve will be specified as inputs for the scenario file. Depending on the source of yield curve values, it may be more practical to just specify rates at specific durations. When a model is run, the calculation engine will bootstrap the yield curve and fill in any missing durations using a cubic-spline bootstrap methodology.
If you are using the PV function to discount future cash flows for valuation purposes, then annual changes in discount rates should be done at Time Index values equaling 12, 24, 36, etc. However, if you are using recursive functions to discount cash flows, then annual changes in discount rates should be made at Time Index values equaling 13, 25, 37, etc.
Annual calendar year changes to interest crediting rates should be done at Time Index values equaling 13, 25, 37, etc.
Variable Rates
Variable rates can be specified for any number of different return/index values needed. Values can be specified as Monthly Rates of Return, Annual Rates of Return, or Index values. The specification does not impact the model run itself, but provides a useful reference for what is expected in the input values.