Forward Rate Advanced Calculator

Forward Rate Calculator

Forward Rate Calculator

Forward Rate Calculator

Component Description
Spot Rate The current interest rate for a specific term.
Future Spot Rate The expected interest rate for a specific term in the future.
Forward Rate The interest rate agreed upon today for a loan or investment that will occur in the future.
Formula Forward Rate = ((1 + Future Spot Rate)^n / (1 + Spot Rate)^m)^(1/(n-m)) – 1
Purpose Used to determine the interest rate for financial transactions that will occur in the future.

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