Forward Rate - Related Instruments

Related Instruments

  • Forward rate agreement
  • Floating rate note

A forward discount is when the forward rate of one currency relative to another currency is higher than the spot rate.

A forward premium is when the forward rate of one currency relative to another currency is lower than the spot rate.

Read more about this topic:  Forward Rate

Famous quotes containing the words related and/or instruments:

    “Just as a new scientific discovery manifests something that was already latent in the order of nature, and at the same time is logically related to the total structure of the existing science, so the new poem manifests something that was already latent in the order of words.”
    —Northrop Frye (b. 1912)

    “Sound all the lofty instruments of war,
    And by that music let us all embrace,
    For, heaven to earth, some of us never shall
    A second time do such a courtesy.”
    —William Shakespeare (1564–1616)