Computes the prefunding ratio in Equation (16.18), capped at 1.
Usage
ag38_prefunding_ratio(excess_payment, nsp_required)
Arguments
- excess_payment
Excess payment or shadow-fund amount.
- nsp_required
Net single premium required to fully fund the guarantee.
Examples
ag38_prefunding_ratio(60000, 100000)
#> [1] 0.6