Calculating the Forward Rate
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- Опубликовано: 10 июл 2024
- This video shows how to calculate the Forward Rate using yields from zero-coupon bonds. A comprehensive example is provided along with a formula to show how the Forward Rate is computed based on zero-coupon yields.
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thx, you explain it so much better and easier than the idiots of my university. Subbed.
@Peng Fu I'll read this comment section at least twice a year, now
This video popped up on my feed 3 years after graduating college and gave me the warmest feeling of never having to worry about this stuff again😂
Thank you so much for helping me out. I was reviewing this content for my final test and this video saved my life!
Finally , a teacher that explains the theory concepts and step by step instructions. I wish I had a teacher like you in my capital markets course! oh wait I do, thank you.
Good lord, you didn't even use WORDS and you did a much better job than my textbook, thank you!!!
I had the video on silence on accident... and I still understood what was going on by just following your circles LOL
You have made the calculation of forward rates very simple. Excellent presentation.
Great Video! We had such confusing notations in our course material. Your video cut the BS and got right to the core! Thanks!
Awesome. Thanks for watching!
You're an excellent teacher. Thank you!
Thank you for your all beautifully explained videos.
Very helpful thank you! This is a very concise way of explaining it!
I'm glad you liked the video. Thanks for the comment!
you're videos are so helpful! thankyou!
Thanks for the explanation, you really explain all in detail
Thank you for the great explanation! It was amazing good clarification for my beginner studies of MsC in Finance!
Great. Thanks for watching!
80,000th sub, Just clicked and jumped. Congrats
Many thanks bro! Finaly I could understand this kind of rate.
Thanks! Very clear video... Helps with my Interest Rate Swap work.
love this channel
Excellent explanation!
Such a beautiful explanation, tq sir ... Love from india ❤️
Great explanation! You should make more videos.
Thank for putting this up. This is fantastic.
No problem Jon!
such a great channel
Thanks man! You saved the day! 🤗🙂
Thank you this was really helpful!
Very well explained, thank you for your time!!
Glad you enjoyed it!
Thanks, my uni can't explain this easily for some reason. Subbed.
Very nice. Thank you!
thank you, very clear
As a master student in finance this is way better than my book(my book is totally useless)
Thanks for the video!
You bet!
Very helpful, thank you!
Sure thing!
thank you!
Thank You !
Thank you, sir
Very clear!!!
That is a great video! Could you please also teach us how to calculate from Par to Zero coupon rate?
THANK YOU
Thank you very much !!!
Professor, Could you share the concept of calculating the "forward 6-quarter rate." Thank you!!!
Really helpful!! Thx!
+Jenna Wang Sure thing! Take care :)
Nice video, thanks for that, which software or app did you use to make the video?
If we're using months instead of years, would n then be (number of months/12)?
Awesome.
what do you do for multiple years like implied 5 year forwar rate in five years?
Can you explain the sum regarding forward contract cancellation & extension
helpful!!
thank you you are the best!
Thanks!
Amazing.
Thanks!
Is this the same as calculating annuity?
How often is interest on a forward rate swap paid?
Why couldn’t my textbook say it that well! Thank you!
No problem!
From a practical perspective, how do you get the zero-coupon rates that are the inputs? I know you can get the one-year Treasury spot since it has no coupons, but the 2-year and longer Treasuries all have coupons.
those are special instruments where "real" bonds are bought by banks which then "transform" them into new instruments which dont have coupon payments (e.g. they sell the coupons separeate from the actual bond, thereby creating a new security -> zero coupon bond)
Thank you for sharing,but when you calculate f2 f3 f5 seems like a little mistake to put 1.035 equal to 0.035???
In the equation, you take (1+ YTM). Thus, if the YTM = 0.035, then you would use 1.035 in the formula. Excellent point, I probably should have made this clearer.
you guys are trying but this formula will be used when (1+PD)/(1+pf) then all raised to power n
But didnt zero bond mean that you only get the interest in the last year? In this equation we say that we get 4,25% in year 1 and year 2 or not?
so where in real life can you find yields for zero coupon bonds? what is an example of a zero coupon bond?
Make one with hedging
Why are you squaring 1.0425? isnt that the rate over the 2 years, meaning you dont have to square it. And even when you calc this out.. you get 5% so when you add 3.5 + 0.5 =4. Which does not equal the 4.25%. Shouldnt 3.5 + f2 = 4.25?
He also said in the video, it was off slightly due to rounding, but not sure if .25% is considered off slightly. This is 25 basis points!
Screen not visible enough . Too dark.
Why the he’ll can’t the graduate professor explain it this way! The book sucks and the videos lectures are worse.