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FONDIR CO (DEC 2022)

This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.

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June 3, 2023 at 1:58 pm #685943
simranxdeep
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- Topics: 39
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How is the forward rate calculated? Why did they use the country base rates to calculate forward rates?
June 3, 2023 at 3:14 pm #685949
John Moffat
Keymaster
- Topics: 56
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Forward rates are always determined (in real life as well as in exams) by using the interest rate parity formula that is provided in the exam.
I do explain this (and the logic) in my free lectures.
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