Examlex
Suppose that for the next five years party X agrees to pay party Y 10% per year, while party Y agrees to pay party X six-month LIBOR (London Interbank Offered Rate) , which is 7.5%. Party X is a fixed-rate payer / floating-rate receiver, while party Y is a floating-rate payer / fixed-rate receiver. Assume that the notional principal amount is $100 million, and that payments are exchanged every six months for the next five years. What will party X pay party Y every six month?
Linear Regression Equation
The mathematical expression that represents the linear relationship between a dependent variable and one or more independent variables in linear regression.
Fahrenheit Degrees
A temperature scale where the boiling point of water is 212 degrees and the freezing point is 32 degrees.
Correlation Coefficient
Represented by r, it is a number between −1 and 1, inclusive, that is used to judge how closely a line fits the data.
Median
The middle value in a data set when the values are arranged in ascending or descending order.
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