Forward Rate Calculation
To extract the forward rate, one needs the zero-coupon yield curve. The general formula used to calculate the forward rate is:
is the forward rate between term and term ,
is the time length between time 0 and term (in years),
is the time length between time 0 and term (in years),
is the zero-coupon yield for the time period ,
is the zero-coupon yield for the time period ,
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