Calculating the Forward Rate | Forex
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This video shows how to calculate the Forward Rate using yields from zero-coupon bonds. A comprehensive example is provided along with a formula to show how the Forward Rate is computed based on zero-coupon yields. Education Unlocked is your source for business and financial education. To view the entire video library for free, visit http://www.EducationUnlocked.org/ To like us on Facebook, visit https://www.facebook.com/EducationUnlocked123 Education Unlocked is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com/
Comments
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THANK YOU
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From a practical perspective, how do you get the zero-coupon rates that are the inputs? I know you can get the one-year Treasury spot since it has no coupons, but the 2-year and longer Treasuries all have coupons.
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Very helpful thank you! This is a very concise way of explaining it!
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you guys are trying but this formula will be used when (1+PD)/(1+pf) then all raised to power n
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Thank you for your all beautifully explained videos.
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If we're using months instead of years, would n then be (number of months/12)?
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Really helpful!! Thx!
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so helpful...thank you
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so helpful...thank you
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thx, you explain it so much better and easier than the idiots of my university. Subbed.
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helpful!!
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you're videos are so helpful! thankyou!
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Finally , a teacher that explains the theory concepts and step by step instructions. I wish I had a teacher like you in my capital markets course! oh wait I do, thank you.
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Very nice. Thank you!
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Is this the same as calculating annuity?