Spot Rate VS Forward Rate

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  • May 21, 2018 at 1:22 pm #22859
    deepak38
    Participant

      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

      May 21, 2018 at 3:08 pm #23869
      Mayank Goyal
      Keymaster

        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. 

        Sent from my LLD-AL10 using Actuarial Info mobile app

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      Actuary Forums › Forums › Actuarial Jobs, Interviews and facts › Interviews and facts › Spot Rate VS Forward Rate