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Interpolation

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Interpolation'

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.

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