# Daily Archives: January 31, 2012

## Forward lessons: Derivative pricing: How to calculate the value of a forward contract in Excel

How to calculate the value of a forward contract in Excel Value of a long forward contract (continuous) The value of a long forward contract with no known income and where the risk free rate is compounded on a continuous basis is given by the

## Forward Rate Calculations: Forward Rate Agreements and Forward Foreign Exchange Rates

How to calculate the values of Forward Rate Agreements (FRA) We are valuing an FRA for someone who is receiving fixed interest rate payments and who is paying floating interest rate payments. Value of an FRA (zero coupon rate calculated on a discrete basis) Where,

## More Forward Rates Lessons: How to calculate Forward Rates – Calculations walk through

How to determine Spot Rates and Forward Rates & Yield to Maturity How to determine Forward Rates from Spot Rates The relationship between spot and forward rates is given by the following equation: ft-1, 1=(1+st)t ÷ (1+st-1)t-1 -1 Where st is the t-period spot rate