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Forward Interest Rate |
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Forward interest rate Interest rate fixed today on a loan to be made at some future date. Forward Interest Rate An interest rate to which a borrower and lender agree for a loan to be made in the future. According to the unbiased expectations hypothesis, forward interest rates predict spot interest rates at the time the loan is actually made, but many analysts dispute whether this is true. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The relationship between the forward interest rate f(s) (see equation 1) and the date s is the term structure we are interested in. More recently, Rice, along with Goldman Sachs, won a portion of a forward interest rate swap on $200 million of outstanding bonds issued to finance the construction of Denver International Airport. A forward interest rate lock has been put in place pending completion of the project. |
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