Short rate - AbsoluteAstronomy.com

Short rate may refer to:

Short rate (old short rate) cancellation (insurance) Penalty method of calculating return premium of an insurance policy
Short rate (90% pro rata) cancellation (insurance) Penalty method of calculating return premium of an insurance policy
Short-rate model (interest) A mathematical model
Mathematical model
A mathematical model is a description of a system using mathematical concepts and language. The process of developing a mathematical model is termed mathematical modeling. Mathematical models are used not only in the natural sciences and engineering disciplines A mathematical model is a...

that describes the future evolution of interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...

s by describing the future evolution of the short rate.

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.