Bonds: Spot Rates from Forward Rates

[@bayoemd]

Easily the most straightforward (pun intended) explanation i have found, thank you so much.

[@ArnoldTutoring]

Love the pun! We might steal that! :)

[@paulyp70]

100% agree with Emmanuel.

[@gustavocooper5760]

Thank you for this straightforward example! It really helps my understanding of the spot/forward rate concepts.

[@ArnoldTutoring]

Glad to hear we could help. Let us know if there's other topics you'd like covered.

[@jacobm7026]

My goodness, such a fantastic explanation. Thanks, Arnold!

[@ArnoldTutoring]

JJ Jetplane thanks for the comment, glad it was helpful.

[@timnguyen1798]

Thank you for the explanation for the content. It really helped me understand the content. It was broken down into concepts and was easy to understand Thank you Arnold.

[@ArnoldTutoring]

Tim Nguyen thanks for the kind words. Glad it was helpful and please let us know if you’d like other problems solved.

[@pranavmoorthi8532]

hi, im studying for the cfa and you explained calculating spots from forwards better than the phds that make the cfa videos. Thank you

[@branesebrafitting6575]

I have finally understood this as a non financial background engineer, thank you.

[@afihaileywibowo1095]

Thank you for the explanation. It is very clear and not intimidating (as in the case of Fixed Income calculation) at all!

[@LECityLECLEC]

Thank you sir I love how you explain bond rates and God bless you

[@almonddonut1818]

Thank you so much for this! I've been so confused and this really helps!

[@purvidholakiya582]

Thankyou ✨ I am appearing for FRM and this really helped

[@neil.campbell]

Thank you. Great explanations and diagrams, this helped me out!

[@ArnoldTutoring]

Neil Campbell happy to help. Let us know if you have other questions.

[@digitalchannel2763]

it was really well explained. finally I understood. thank you.

[@vrcrush1]

this saved my life!

[@ArnoldTutoring]

Pablo Bolzon we love the dramatic comment! Thanks 🙏🏼

[@NightLightOwl]

For S3, why is it to the power of 1/3 and not the cubed root?

[@rodsr9906]

Help, im still confused. At the S2, why do we elevate it to 1/2? (in the video you squared it but it is the same) I understand that the spot rate is only ONE payment. So S2 would be ONE payment on an amount at the end of year 2. If we compare with S1 of 6% and 1y1y forward rate of 11%, it means that if I started with 1000, I will end with 1000*1.06*1.11 . However if I invest at the S2 spot rate I will only recieve 1000*1.0847 according to your calculation. Can you please explain this? Thank you Now, if spot rates are supposed to be paid at the end of each year, then it makes sense.

[@natazena1241]

Thank you so much for this video! I've solved 1 problem about spot rate

[@goblinslayer9693]

It was easy to understand! Thank you.

[@谭婉芳]

Hi! is the spot rate the same as zero-coupon rate?

[@gs242-e2b]

what would the bond price be at time 1 then?

[@JoshMolina]

Great explanation. Thank you.

[@SalK-3S3K]

Why should the two sides, (1+S)^2=(1.11)*(1.06), be equivalent-logic?

[@joeytavolacci8472]

Thank you! Amazing explanation

[@tingyuliu3943]

Thank you! Super useful!

[@twinkleagarwal8649]

So nicely explained. Thank you

[@CeeBeeThakur]

Thanks for such easy explanation

[@manthantheopgamer9156]

yes well explained, youre a great help to finance students

[@ArnoldTutoring]

thanks for the kind words. Glad it was helpful and please let us know if you’d like other problems solved.

[@haresearchconsultancy920]

Hi, I have a question from these. But i cant solve this correctly. Can you pls check this and advice me from which part is this question ask? And how to solve? Tim & Co is building a new factory in Yorkshire, England. They must pay a final construction payment of £ 9,000,000 in six months’ time. Foreign exchange and interest rate quotations are as follows: You can trade at the following prices: Spot rate, euro € per British pound sterling £ €1.4876/£ One year forward exchange rate €1.4906/£ One - year euro interest rate 4.10 % One year pounds’ sterling interest rate 3.55% Required: 1. Is covered interest arbitrage worthwhile? If so, explain the steps and compute the profit based on an initial transaction of £9,000,000. Briefly discuss your findings

[@myfinperspective7212]

thank you very much.. very clear explanation...1+ subscribe for you

[@lucijozo]

Thanks so much!

[@sharedknowledge162]

Thank you!

[@LeeFleek]

Thank you man.

[@elijahxie8762]

really helpful

[@shriya8966]

Hey, thanks!

[@CA_shree]

🔥❤️🙌🏻

[@MG-ui8jk]

doesn't help me