Why we use forward rate rather than current yield curve rate to find receipt from bank???
Ask the Tutor ACCA AFM
Sembilan co june 2012
8y ago#1The wording of the question is a bit confusing.
When it says they will receive an amount based on the current yield curve rate, it means the current rate when they receive it (and not the current rate as of now). So all we can do is assume that the current rate when they receive it will be the same as the forward rate.
Sign into reply to this topic.