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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.
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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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Search results for 'Interpolation'
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http://www.investopedia.com/articles/trading/10/simple-exponential-moving-averages-compare.asp
... Early practitioners of time series analysis were actually more concerned with
individual time series numbers than they were with the interpolation of that data ...
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http://www.investopedia.com/articles/retirement/10/rules-converting-ira-annuity-to-roth.asp
... When this is the case, an interpolation is made of the contracts terminal reserves,
and the fair market value of the contract is then based upon this amount ...
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