Spot Rate VS Forward Rate

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Deepak38
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Spot Rate VS Forward Rate

Post by Deepak38 » 21 May 2018, 18:52

I am not able to understand the Spot Rate and Froward Rate and the comparison between them theoritically. Can anyone explain that in lay-mam language? (Prepairing for the interviews)

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Mayank
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Re: Spot Rate VS Forward Rate

Post by Mayank » 21 May 2018, 20:38

Deepak38 wrote:I am not able to understand the Spot Rate and Froward Rate and the comparison between them theoritically. Can anyone explain that in lay-mam language? (Prepairing for the interviews)

Sent from my TA-1021 using Actuarial Info mobile app
Spot rate: Current rate at current date.

Forward Rate: A forward rate is what the rate ought to be  (based on interest rate differentials, SWAP points etc) some time in the future. 


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Mayank Goyal
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