Forward Rates from Spot Rates
This lesson is part of the course
In this lesson
You derive the 1-year forward rates implied by today's zero curve, a 2-year forward rate starting in 3 years, and show that discounting with forwards gives the same value as the spot rate.
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Lessons in this course
- Bond Cash Flows & Price: Coupons + Principal Locked
- Yield to Maturity with RATE & Current Yield Locked
- Accrued Interest: Clean vs Dirty Price (30/360) Locked
- Spot Rates: Pricing a Bond off the Zero Curve Locked
- Forward Rates from Spot Rates Locked
- Macaulay & Modified Duration: the Table Method Locked
- Convexity: Better Price-Change Estimates Locked
- Portfolio Duration & Immunisation Basics Locked