The yield curve is a plane (or a collection of points on a surface) in multi-factor rate space; the constraint that a bond portfolio has zero DV01 defines a plane in weight space; a regression residual is the perpendicular distance from a data point to the fitted hyperplane. Behind all of these lies a single geometric principle: a plane in is determined by a point and a normal vector, and a line is determined by a point and a direction vector. This note builds the Cartesian and parametric equations for both, derives the distance-from-a-point-to-a-plane formula via projection, and connects the machinery to the cross product from the previous lesson.
Learning objectives. By the end of this note you should be able to:
- write the Cartesian equation for a plane given a point and a normal vector, or given three non-collinear points;
- write the parametric form for a line given a point and a direction, and convert between parametric and symmetric forms;
- find the angle between two planes from the angle between their normal vectors;
- compute the distance from a point to a plane using the projection formula;
- find the line of intersection of two planes by solving the system parametrically.
In this lesson
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- Planes in ℝ³: The Normal-Vector Approach
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- Parametric Form of a Plane
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- Lines in ℝ³: Parametric and Symmetric Forms
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- Angle between Two Planes
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- Distance from a Point to a Plane
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- Line of Intersection of Two Planes
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- Summary Table
Before you start
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