forward rate
21Forward rate agreement (FRA) — Agreement to borrow or lend at a specified future date at an interest rate that is fixed today. The New York Times Financial Glossary …
22Forward rate — A projection of future interest rates calculated from either the spot rates or the yield curve. The New York Times Financial Glossary …
23maximum forward rate smoothing — An alternative yield curve smoothing technique. The most accurate yield curve smoothing method for forward rates. The yield curve with the smoothest possible forward rate function, consistent with observable data, is closely related to but… …
24Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …
25Forward exchange market — The forward exchange market is a market for contracts that ensure the future delivery of a foreign currency at a specified exchange rate. The price of a forward contract is known as the forward rate.Forward RatesForward rates are usually… …
26Forward price — The forward price or forward rate is the agreed upon price of an asset in a forward contract. Using the rational pricing assumption, we can express the forward price in terms of the spot price and any dividends etc., so that there is no… …
27Forward Points — The number of basis points added to or subtracted from the current spot rate to determine the forward rate. When points are added to the spot rate, there is a forward points premium; when points are subtracted from the spot rate, there is a… …
28Forward-forward agreement — In business and contract law, a future forward agreement (FFA) is a form of forward rate agreement in which party A agrees to lend party B the m1 amount of money, at future time t1 . In return, B will pay to A a larger monetary amount m2 at time… …
29Forward premium — The term forward premium, as used in currency trading, refers to the premium (or discount) resulting from a forward contract to be executed in the future at a forward rate. The premium is calculated as follows:((forward rate spot rate)/spot… …
30Forward Premium — When dealing with foreign exchange (FX), a situation where the spot futures exchange rate, with respect to the domestic currency, is trading at a higher spot exchange rate then it is currently. A forward premium is frequently measured as the… …
