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In the last year, I have learned a lot regarding Forward Rate. Now it is time to share my knowledge. This article will examine the issue - 3 facts you must know regarding Forward Rate.

The 1st thing you must remember is the following.

A spot rate is a price for a transaction that is happening immediately. For a transaction that is to occur in the future, the price is called the forward rate.

The second In commodities futures markets, a spot rate is a price for a commodity being traded immediately, or on the spot. A forward rate is the settlement price of a transaction that will not take place until a predetermined date; it is forward-looking. In bond markets, the forward rate refers to the effective yield on a bond, commonly U.S. Treasury bills, and is calculated based on the relationship between interest rates and maturities. The third thing is that it can easly be calculated using a forward rate calculator, such as the one of Icalc.

In conclusion, this article reviewed the issue 3 facts you must know regarding Forward Rate. We would love to hear your notes regarding our article.