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Forward interest rate

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Forward Interest Rates
Calculations
Forward interest rates are interest rates which are specified now for a loan or transaction that will occur at a specified future date.

 


FORWARD INTEREST RATE - Interest rate fixed today on a loan to be made at some future date.
FORWARD INTEREST RATE AGREEMENT - where two entities agree to a fixed interest rate in the future. If t...

Forward Interest Rate
The prevailing interest rate for a contract in a specific future time period.
Forward Margin
The difference between the current (or spot) price and its projected future price (forward rate).

If Eurodollar futures were being introduced today, they would probably be quoted with forward interest rates on the underlying deposits. Back in 1982, though, cash settled financial futures were a novelty.

Liquidity premium
The amount that forward interest rates exceed expected future spot interest rates.
Self-liquidating loan
Loan to finance current assets, The sale of the current assets provides the cash to repay the loan.

Interest rate fixed today on a loan that is made today. Related: forward interest rates.
Spot lending
The origination of mortgages by processing applications taken directly from prospective borrowers.

In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to at a fixed price for future delivery.
Forward interest rate
Interest rate fixed today on a loan to be made at some future date.
Forward-looking multiple ...

Van Deventer, Imai and Mesler summarize three different techniques for curve fitting that satisfy the maximum smoothness of either forward interest rates, zero coupon bond prices, or zero coupon bond yields
Local regression using kernels ...

Related: forward interest rates. Spot lending The origination of mortgages by processing applications taken directly from prospective borrowers.

forward interest rate An interest rate which is specified now for a loan that will occur at a specified... forward P/E Also known as Price/earnings ratio, using earnings estimates for the next four quarters.

See also: Forward rate, Interest rate swap, Yield curve, Banks, Forward exchange

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