This course is not only a calculation reference for Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates but also includes a detailed walkthrough (with examples) of how these values may be determined in EXCEL.
EXCEL files:
This package deal also includes the supporting EXCEL file containing detailed worked-out examples.
1. Forward Prices
- Forward price of a security with no income
- Forward price of a security with known cash income
- Forward price of a security with known dividend yield
2. Relationship between spot rates and forward rates
- How to determine forward rates from spot rates
- How to determine spot rates from forward rates
3. Yield to Maturity (YTM)
- Trial and error method
- Using Goal Seek functionality
4. Forward Rate Agreements (FRAs)
- Value of an FRA (zero coupon rate calculated on a discrete basis)
- Value of an FRA (zero coupon rate calculated on a continuously compounded basis)
5. Forward Exchange Rates
- FX Rates (Interest Rates compounded on a discrete basis)
- FX Rates (Interest Rates compounded on a continuous basis)
6. Value of a Forward Contract
- Value of a long forward (continuous)
- Value of a long forward (discrete)
- Value of a long forward contract (continuous) which provides a known income
- Value of a long forward contract (continuous) which provides a known yield
- Value of a forward foreign currency contract