# Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates

SKU 00084
\$0.00
In stock
1
Product Details

This course is a calculation reference for Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates. It also provides a detailed walkthrough (with examples) of how these values may be determined in EXCEL.

Detailed methodologies are given 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.

Save this product for later