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Interpolation
(redirected from interpolating)

    Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.09 sec.
Interpolation
A method of estimating an unknown price or yield of a security. This is achieved by using other related known values that are located in sequence with the unknown value.

Notes:
Interpolation is most often used in situations where a table of values is missing data. As an example, some bond tables list net yields for bonds in a sequence of 1, 3, and 5 years. Interpolation would be used to determine the yield for the 2nd and 4th year. In effect, interpolation is a process of trial and error.

Also called linear interpolation.

Interpolation
A method of approximating a price or yield that is unknown by using numbers that are known.
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