AuthorTopic: Relationship between Short-Term Forward Rates and Spot Rates
yekky
@2015-01-28 07:20:05
Greetings from Toronto.

I have pretty much got a solid grip on the Bond related concepts and calculations yet I am still struggling to understand the Spot rate and Forward rate relationships and formulas. Could someone kindly put the textbook in LOS 65 into laymen terms for me. Especially for the following:

i) Computing spot rates from forward rates

ii) Computing forward rates from spot rates

iii) Computing Bond values from forwards

Thanks very much and all the best in your preparations.

CFA Discussion Topic: Relationship between Short-Term Forward Rates and Spot Rates

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz