Creating the New York Seven scenarios

I am wondering what the consensus is on how people create the New York 7 scenarios. A colleague and I discovered recently that we were doing it differently.



For example,



NY 7 Scenario 3

Increase of 100bps to the interest rate curve at the 1st month of each anniversary over 5 years, then decrease of 100bps to the interest rate curve at the 1st month of each anniversary to the original level at the end of the 10 years and then level;



Assume interest rates stay constant between each anniversary.





If the initial value is 2%, does that mean:



months 1-12: 3%

months 13-24: 4%

months 25-36: 5%

months 27-48: 6%

months 49-60: 7%

months 61-72: 6%

months 73-84: 5%

months 85-96: 4%

months 97-108: 3%

months 109-120: 2%

months 121+: 2%



or does it mean:



months 1-12: 2%

months 13-24: 3%

months 25-36: 4%

months 27-48: 5%

months 49-60: 6%

months 61-72: 7%

months 73-84: 6%

months 85-96: 5%

months 97-108: 4%

months 109-120: 3%

months 121+: 2%

Creating the New York Seven scenarios