4.3.4.3.2.2 Defining Equation using Define Equation section

Note:

This section is not applicable to Manual Models. This section appears when you select External Model from Rate Calculation drop-down list.

Figure 4-69 Define Equation Section

To define Equation, perform the following steps:

1. Click Define Equation. Enter following details:
   • Operator: Select operator as +, -, *, or /
   • Coefficient: Enter the value of Coefficient
   • Dimension: Select the Dimension
   • Power: Enter the power for selected Dimension.

     For Example:

     Equation becomes:

     2 + 1.5 * original Term ^ 2 + 3 * Rate Diff ^ 2

     Note:

     Before defining equation, you must select dimensions and accordingly dimensions drop-down will display values along with Intercept. For example, if you have already chosen Original term and Rate Difference as dimensions, then Dimension drop-down list would displays the following three values:

     • Intercept
     • Original Term
     • Rate Difference

     After defining all coefficients, Power, operators, click Equation to get the model equation.

     A confirmation message is displayed.

2. Click Ok to use the same for Prepayment Rate Calculations.
3. You can add new row for each term using Add Row. Multiple rows can be added using Add Multiple Rows.
4. Click Apply.