# Forward Prices, Forward Rates and Forward Rate Agreements (FRA) - EXCEL Example

SKU 00083
\$24.99
In stock
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Product Details

This course consists of an EXCEL file which contains worked-out detailed examples for the following:

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 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

#### Learning Objectives

After taking this course you will be able to:

• Calculate forward prices
• Understand the relationship between spot and forward rates
• Determine forward rates from spot rates and vice versa
• Calculate YTM using the trial and error method
• Calculate YTM using EXCEL’s Goal Seek functionality
• Calculate the values of forward rate agreements
• Calculate the values of forward contracts

#### Prerequisites

The candidate should be comfortable with basic mathematics, statistics, probability and EXCEL.

#### Target audience

This course is for beginners in the finance field and is also aimed at banking, corporate, treasury and sales teams.

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