To avoid the substantial volatility in the implied interest rate after 2005 as a result of declining debt, interest rates are held constant at 5.4 percent-the average interest rate assumed by CBO on short- and long-term Treasury securities-from 2005 through the end of the simulation period.
The debt declined by 25%.
mnli hypothesis: The debt declined by 25%. premise: To avoid the substantial volatility in the implied interest rate after 2005 as a result of declining debt, interest rates are held constant at 5.4 percent-the average interest rate assumed by CBO on short- and long-term Treasury securities-from 2005 through the end of the simulation period.