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Forward Interest Rate
(redirected from Forward Interest Rates)

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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.


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1995), 'Estimating Forward Interest Rates with Extended Nelson and Siegel Method', Sveriges Riksbank Quarterly Review, 3, pp.
To choose between these hypotheses, we examine how monetary policy surprises affect daily traded commodity prices, term interest rates, and forward interest rates.
Our strategy is to take as a basis the forward interest rates implied by the current spot treasury curve.
 
 
 
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