Two parties can reach an agreement in the future, so Part A will purchase this T bill from Part B at a price of $985 in 30 days. It will be a futures contract. Bond futures contracts are similar to equity futures, except for the fact that they have bonds as underlying. Futures contracts can be listed on both zero coupon bonds (p.B. T-Bills in the United States) and coupon bonds. Pre-project rates are theorized prices of financial transactions that may occur at some point in the future. The spot`s sentence answers the question: „How much would it cost to make a financial transaction today?“ The futures course answers the question: „How much would it cost to make a financial transaction on the future date X?“ These futures contracts can be concluded on both individual bonds and a bond portfolio. If market interest rates rise, the discount rate will increase, resulting in a lower price for the T-Bill. As the long is needed to buy the loan, a lower price will be a loss for him and a gain for the short.

Similarly, if the price increases, it will be a gain for the long and loss for the short. Suppose you have $910 to invest for the next 2 years. You can invest it in a zero-to-2-year bond that is at 4.5% yield, or you can invest it in a zero-to-1-year coupon loan that is at 4.7% yield, while agreeing with a trader who, at maturity of the zero-coupon bond, will invest with him at an f2 leverage rate at the end of the first year. Normally, forward interest rates are used by investors who think they have a good understanding of market trends, from the immediate past to the current market scenario, with respect to the prices of certain item changes relative to time. Potential investors are simply convinced that real future interest rates will always be higher or lower than the current market rate. This may be a signal for potential investors and the chance to do so. r k `displaystyle r_`k` is the zero coupon yield for the period (0, tk) `displaystyle (0.t_`k`), (k -1.2). A cash interest rate for a n-year period represents the cumulative effect of interest rate expectations for all periods. It can be rebuilt at the same height as the combined effect of the forward interest rate for the first, second, third and tenth periods. Ce concept peut être exprimé mathématiquement comme suit: Taux d`avance=(1+0.10)2 (1+0.08)1`1=0.1204=12.04%`text `Forward rate` = `frac`left (1+0.10 `right„{2} „„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„ „„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„„` `{1}`-1 = 0.1204 = 12.04%Taux d`appel= (1+0.08)1 (1+0.10)2 `1=0.1204=12.04% Un débit est utilisé par les acheteurs et les vendeurs, qui souhaitent effectuer un achat ou une vente immédiat , tandis qu`un taux d`anticipation est considéré comme les attentes du marché pour les prix futurs. It can serve as an economic indicator of how the market will evolve in the future, when spot rates are not indicators of market expectations and are, on the contrary, the starting point for any financial transaction.

If we take as stated above, the price of the three-year zero coupon bond is $0.70 per nominal debt and the nominal cost of five-year bonds is $0.5323 per nominal unit, with the future interest rate for period n being the future, sn and sn-1 are the n and n-1 guarantee rates.