Page 63 - FINAL CFA SLIDES DECEMBER 2018 DAY 14
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Example: Forward rates from spot rates: Let’s
       extend the previous example to 3 periods. The              Session Unit 14:
       current 1-year spot rate is 4.0%, 2-year spot              52. Introduction To Fixed Income Valuation
       rate is 8.0%, and the 3-year spot rate is 12.0%.
       Calculate the 1-year forward rates 1 and 2
       years from now.



       For 1 year from now, we already had it as:









                                                         tanties


       For 2 year from now, we already had it as:
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