Reply To: Spot Rate VS Forward Rate
Mayank Goyal
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)
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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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