[lmi-commits] [lmi] master 6ea630b 2/5: Fix defect introduced 20100428T1231Z: incorrect terminology

[Greg Chicares]

branch: master
commit 6ea630b9ed5557a1fa305730a87d6d291cd8689a
Author: Gregory W. Chicares <gchicares@sbcglobal.net>
Commit: Gregory W. Chicares <gchicares@sbcglobal.net>

    Fix defect introduced 20100428T1231Z: incorrect terminology
    
    Commit ec606b9c757 said "i over i upper 12" where "12 times i upper 12"
    was clearly meant.
    
    * dbnames.xpp: Corrected that defect, in two places. Also replaced the
      numerical example with one that rounds in the direction prescribed by
      '7702.html' [7/12].
    * interest_rates.hpp: In the same vein, rewrote a comment that should
      have said "12 * i upper 12", using the more general "N * i upper N".
---
 dbnames.xpp        | 4 ++--
 interest_rates.hpp | 2 +-
 2 files changed, 3 insertions(+), 3 deletions(-)

diff --git a/dbnames.xpp b/dbnames.xpp
index 008db43..305880d 100644
--- a/dbnames.xpp
+++ b/dbnames.xpp
@@ -69,7 +69,7 @@
 {DB_AllowGpt,DB_Topic_7702And7702A,"AllowGpt","Allow guideline premium test: 
0=no, 1=yes",}, \
 {DB_AllowNo7702,DB_Topic_7702And7702A,"AllowNo7702","Allow 7702 to be ignored 
(foreign): 0=no, 1=yes",}, \
 {DB_AnnInterestRate7702,DB_Topic_7702And7702A,"AnnInterestRate7702","Annual 
statutory 7702 and 7702A interest rate, e.g. 0.04 for pre-2021 life-insurance 
contracts",}, \
-{DB_MlyDiscountRate7702,DB_Topic_7702And7702A,"MlyDiscountRate7702","Monthly 
rate (i over i upper 12) for discounting NAAR for DCV only, e.g. 0.0032737 for 
4% annual rate",}, \
+{DB_MlyDiscountRate7702,DB_Topic_7702And7702A,"MlyDiscountRate7702","Monthly 
rate (12 times i upper 12) for discounting NAAR for DCV only, e.g., 0.00246627 
for a 3% annual rate",}, \
 {DB_Irc7702Obreption,DB_Topic_7702And7702A,"Irc7702Obreption","Prevent the 
product verifier from treating a frank error as such, due to some indult): 0=no 
[other values to be added later]",}, \
 {DB_CorridorWhence,DB_Topic_7702And7702A,"CorridorWhence","Source of CVAT 
'corridor' factors: 0=first principles, 1=table",}, \
 {DB_Irc7702NspWhence,DB_Topic_7702And7702A,"Irc7702NspWhence","Source of 7702 
and 7702A net single premium rates: 0=first principles, 1=table, 2=reciprocal 
of CVAT corridor",}, \
@@ -128,7 +128,7 @@
 
{DB_AllowMortBlendSmoke,DB_Topic_MortalityCharges,"AllowMortBlendSmoke","Mortality
 rating can be blended by smoking/tobacco use: 0=no, 1=yes",}, \
 {DB_Topic_Interest,DB_FIRST,"Interest","Interest rates, limits, spreads, and 
bonuses",}, \
 {DB_GuarInt,DB_Topic_Interest,"GuarInt","Guaranteed interest rate",}, \
-{DB_NaarDiscount,DB_Topic_Interest,"NaarDiscount","Monthly rate (i over i 
upper 12) for discounting net amount at risk, e.g. 0.00246627 for 3% annual 
rate (because that's how it's often specified in contracts)",}, \
+{DB_NaarDiscount,DB_Topic_Interest,"NaarDiscount","Monthly rate (12 times i 
upper 12) for discounting net amount at risk, e.g., 0.00246627 for a 3% annual 
rate (because that's how it's often specified in contracts)",}, \
 {DB_GuarIntSpread,DB_Topic_Interest,"GuarIntSpread","Guaranteed interest 
spread, e.g. .02 = 200bp [not yet implemented]",}, \
 {DB_GuarMandE,DB_Topic_Interest,"GuarMandE","Guaranteed M&&E charge",}, \
 {DB_CurrIntSpread,DB_Topic_Interest,"CurrIntSpread","Current interest spread, 
e.g. .01 = 100bp",}, \
diff --git a/interest_rates.hpp b/interest_rates.hpp
index b969df0..f01a1cf 100644
--- a/interest_rates.hpp
+++ b/interest_rates.hpp
@@ -40,7 +40,7 @@
 // rates, and annual and monthly rates, are stored where needed.
 
 // Interest rates are generally stored as i (or, for different
-// periodicity, i upper 12, e.g.) rather than as (1 + i). It might
+// periodicity, N * i upper N) rather than as (1 + i). It might
 // seem better, at first blush, to store (1 + i), but monthiversary
 // calculations generally calculate an interest increment, round it,
 // and then add it to the principal.