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An affine term structure model is a financial model that relates zero-coupon bond prices (i.e. the discount curve) to a spot rate model. It is particularly useful for deriving the yield curve – the process of determining spot rate model inputs from observable bond market data.
Multiparameter equations of state are empirical equations of state that can be used to represent pure fluids with high accuracy. Multiparameter equations of state are empirical correlations of experimental data and are usually formulated in the Helmholtz free energy. The functional form of these models is in most parts not physically motivated.
Monte Carlo methods are a class of computational algorithms that rely on repeated random sampling to compute their results. In statistical mechanics applications prior to the introduction of the Metropolis algorithm, the method consisted of generating a large number of random configurations of the system, computing the properties of interest (such as energy or density) for each configuration ...
Sectoral balances using CBO data. Their method defines the balances as: A) Federal budget balance; B) Current Account (multiplied by -1 in the diagram); and C) Nonfederal Domestic Balance, representing mainly private sector net savings and the state and local government sector balance. The equation A+B+C=0 must hold by definition. [6]
Many problems in mathematical finance entail the computation of a particular integral (for instance the problem of finding the arbitrage-free value of a particular derivative). In many cases these integrals can be valued analytically , and in still more cases they can be valued using numerical integration , or computed using a partial ...
By Jill Krasny and Zachry Floro Math class may have seemed pointless back in the day, but it turns out all those confusing equations are quite useful. Math can be used to solve every money problem ...
PSRK is a group-contribution equation of state. This is a class of prediction methods that combines equations of state (mostly cubic) with activity coefficient models based on group contributions, such as UNIFAC. The activity coefficient model is used to adapt the equation-of-state parameters for mixtures by a so-called mixing rule.
Statistical finance [1] is the application of econophysics [2] to financial markets. Instead of the normative roots of finance , it uses a positivist framework. It includes exemplars from statistical physics with an emphasis on emergent or collective properties of financial markets.