Explain the Main Features and Use of Overnight Indexed Swaps

question 87

Essay

Explain the main features and use of overnight indexed swaps.

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Definitions:

Negative Correlation

A connection between two variables where as one variable rises, the other falls, and the inverse relationship applies as well.

Correlation Coefficient

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

Relationship

A connection, association, or interaction between two or more entities, persons, or concepts.

Correlation Coefficients

Statistical measures that describe the type and strength of the relationship between two variables.