How does the Forward Rate Calculator work?
Free Forward Rate Calculator - Given two times and two zero-coupon yield rates at those times, this calculates the forward rate.
This calculator has 4 inputs.
This calculator has 4 inputs.
What 1 formula is used for the Forward Rate Calculator?
(1 + r2)t2/(1 + r1)t1/
What 5 concepts are covered in the Forward Rate Calculator?
- bond
- a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
- coupon
- the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
- forward rate
- price of an asset in a forward contract
- rate
- the ratio between two related quantities in different units. A measure, quantity, or frequency.
- yield
- How much an investment returns in terms of interest rate
Forward Rate Calculator Video
