How Do You Compute the Swap Rate at Initiation

question 7

Essay

How do you compute the swap rate at initiation?

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Definitions:

SST

Sum of Squares Total, a measure in statistical analysis representing the total variation within a dataset.

SSR

Sum of Squares due to Regression, a measure used in statistical analysis to determine the discrepancy between observed and predicted values.

Coefficient Of Correlation

A statistical measure that represents the strength and direction of a linear relationship between two quantitative variables.

Coefficient Of Determination

A measure that represents the proportion of variance for a dependent variable that's explained by an independent variable or variables in a regression model.