Forward Rates and Forward Prices – Topic Guide

This course is not only a calculation reference for Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates but also includes a detailed walkthrough (with examples) of how these values may be determined in EXCEL.

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This package deal also includes the supporting EXCEL file containing detailed worked-out examples.

 

EXCEL Files

    1. Forward Prices
      • Forward price of a security with no income
      • Forward price of a security with known cash income
      • Forward price of a security with known dividend yield
    2. Relationship between spot rates and forward rates
      • How to determine forward rates from spot rates
      • How to determine spot rates from forward rates
    3. Yield to Maturity (YTM)
      • Trial and error method
      • Using Goal Seek functionality
    4. Forward Rate Agreements (FRAs)
      • Value of an FRA (zero coupon rate calculated on a discrete basis)
      • Value of an FRA (zero coupon rate calculated on continuously compounded basis)
    5. Forward Exchange Rates
      • FX Rates (Interest Rates compounded on a discrete basis)
      • FX Rates (Interest Rates compounded on a continuous basis)
    6. Value of a Forward Contract
      • Value of a long forward (continuous)
      • Value of a long forward (discrete)
      • Value of a long forward contract (continuous) which provides a known income
      • Value of a long forward contract (continuous) which provides a known yield
      • Value of a forward foreign currency contract

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