Spot Rate vs. Forward Rates (Calculations for CFA® and FRM® Exams)
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Күн бұрынAnalystPrep's Concept Capsules for CFA® and FRM® Exams
This series of video lessons is intended to review the main calculations required in your CFA and FRM exams.
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Spot Rates
A spot interest rate gives you the price of a financial contract on the spot date. The spot date is the day when the funds involved in a business transaction are transferred between the parties involved.
Forward Rates
In theory, forward rates are prices of financial transactions that might take place at some future point. A forward rate indicates the interest rate on a loan beginning at some time in the future, whereas a spot rate is the interest rate on a loan beginning immediately. Thus, the forward market rate is for future delivery after the usual settlement time in the cash market.
Implied Forward Rates
Implied forward rates are the break-even reinvestment rate calculated from the spot rates.
@willfowls2400 9 ай бұрын
Wow, amazing. I've been trying to figure out this calculation/formula for months. Thank you so much!
@sumutrapillai633 Ай бұрын
Very nice,clean and crsip.thank you
@analystprep 24 күн бұрын
You are welcome 😊 If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review
@arjungupta2687 3 жыл бұрын
past 2-3 days i was tryin to get this topic but it just kept going over m head but this video , sir , excellently made much more blessings to you
@brightmind5345 8 ай бұрын
that was an exceptional explanation!, I was worried about memorizing, but now you gave me relief!
@analystprep 7 ай бұрын
Glad it helped! If you like our video lessons, it would be appreciated if you could leave us a review at www.trustpilot.com/review/analystprep.com
@chrisrusert1662 2 жыл бұрын
Super, super helpful. Thank you, Nilay!!
@chriswong8862 2 жыл бұрын
Thanks for your help. This is much better than the lecture note from my class, which only contains a bunch of words.
@alishabeerali5709 4 жыл бұрын
LOVELY !
@poojanvakharia5497 2 жыл бұрын
Really helpful and properly explained...thank you so much for putting this ...so easy to understand...I used to get confused but this time line method make it very easy and reliable. Thank you sir for amazing explanation.
@analystprep 2 жыл бұрын
You're very welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to give us a review at facebook.com/pg/AnalystPrep/reviews/
@haritha3991 Жыл бұрын
Wow amazing explanation. I was reading multiple text books but i didn't get the concept right. But you made me understand it better. Thanks Nilay Arun👍
@analystprep Жыл бұрын
Glad it helped! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com
@ElsonJesusGrace 3 жыл бұрын
Your so good to listen at - Conceptually very clear now
@analystprep 3 жыл бұрын
You're welcome!
@rahulpurohit6667 3 жыл бұрын
Very good explanation 👏👌
@kerryannforrester6049 Жыл бұрын
Very clear explanation
@nguyenvanluan2892 2 жыл бұрын
got it in 2 mins, thank
@shabana_04 2 жыл бұрын
This was explained very clearly. I was here confused from taking a course on Financial markets offered by Coursera.
@analystprep 2 жыл бұрын
Thank you for the kind words! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com
@the-quant 2 жыл бұрын
Good session , thank you Nilay Arun&Analyst prep
@analystprep 2 жыл бұрын
You're welcome!
@poojam2358 3 жыл бұрын
Really nice and detailed explanations.. !! 👍 Greetings from India..!! 🤟
@analystprep 3 жыл бұрын
Glad you liked it!
@mayankmanchanda5366 4 ай бұрын
Very well explained
@analystprep 4 ай бұрын
Glad it was helpful! If you like our video lessons, it would be appreciated if you could leave us a review at www.trustpilot.com/review/analystprep.com
@rainniwkw 3 жыл бұрын
Thank you 🤩
@analystprep 3 жыл бұрын
You’re welcome 😊
@synncmaster 3 жыл бұрын
You are epic, thanks
@analystprep 3 жыл бұрын
You're welcome! If you like our video lessons, it would be helpful if you could take 2 minutes of your time to leave us a review here: www.trustpilot.com/review/analystprep.com
@amlanhaque461 3 жыл бұрын
Sir, is there any efect of spread in calculating forward rate?
@AN-jb7dc 2 жыл бұрын
I get FRA...but I'm looking for an example of discrete to continuous compounding if questions ask to calculate answers in continuous compounding. What should we do then?.....I'm totally confused about this concept.
@olumuyiwaadesina7309 3 жыл бұрын
Awesome
@analystprep 3 жыл бұрын
Thanks!
@Sunil-ne8mx 2 жыл бұрын
Thanks
@analystprep 2 жыл бұрын
Welcome
@PUMA4LIFE101 3 жыл бұрын
dunno why I pay over $1,000 peryear at university when the lecturer cant even explain things clearly but you can explain in 20 odd minutes. many thanks
@analystprep 3 жыл бұрын
Hi Dwayne. You are very welcome. If you like our video lessons, it would be helpful to spread the word if you could take 2 minutes of your time to leave us a review at www.trustpilot.com/review/analystprep.com
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