forward rate

forward rate definition - business

forward rate

  1. The expected yield on a given fixed-income security at a particular time in the future. For example, if the yield on six-month Treasury bills is expected to be 10.5% in a year, this yield is the forward rate on six-month bills.
  2. The rate at which a particular currency or commodity may be purchased on a forward contract.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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