 # Forward Rate Calculator

<-- Time 1
% <-- Yield Rate 0-1
<-- Time 2
% <-- Yield Rate 0-2

### How does the Forward Rate Calculator work?

Free Forward Rate Calculator - Given two times and two zero-coupon yield rates at those times, this calculates the forward rate.
This calculator has 4 inputs.

### What 1 formula is used for the Forward Rate Calculator?

(1 + r2)t2/(1 + r1)t1/

For more math formulas, check out our Formula Dossier

### What 5 concepts are covered in the Forward Rate Calculator?

bond
a type of security under which the issuer owes the holder a debt, and is obliged � depending on the terms � to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
coupon
the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
forward rate
price of an asset in a forward contract
rate
the ratio between two related quantities in different units. A measure, quantity, or frequency.
yield
How much an investment returns in terms of interest rate