Spot rates and forward rate calculation
The formula developed in Chapter 06 gave: Assume the spot rates follow the formula In general, fn−1 is the one-year forward interest rate for money. In the special case in which there is no uncertainty in future interest rates, the forward rate calculated from the yield curve would equal the short rate that will Investing's forward rate calculator enables you to calculate Forward Rates and Forward Points for single currency pairs. Spot Price: Base Interest Rate:.