Linear

1. Numerical relationships.

Straight-line, or approximately straight-line.

2. Interest rate derivatives.

Describing interest rate derivatives whose values are determined primarily by the reference interest rate, in an approximately proportional relationship.

Examples include interest rate swaps and forward rate agreements.

Contrasted with non-linear interest rate derivatives.

See also

• Compounding effect
• Exponential growth
• Forward rate agreement
• Geometric progression
• Interest rate derivative
• Interest rate swap
• Line
• Linear interpolation
• Linear regression
• Non-linear
• Positive linear relationship