# 加拿大论文代写哪里好：期汇率

[1 + 1.12%(92/360)][1 + r(61/360)]=[1 + 1.15%(153/360)]

In the light of the study of Levi (2009), a spot rate is a rate that is used to conduct a financial transaction at times zero either for a currency or any other security such as bonds. In contrast to this, a forward rate is that rate that is decided by parties at times zero for conducting a financial transaction at some time in future. Spot rate or a forward rate is also known as the price that is settled by parties that are binding to any financial contract. The reason for using forward rates rather than spot rate is mainly to hedge the currency or security such as bonds in order to avoid any type of potential risk. Bilson and Marston (2007) stated that the intention behind using forward rates in selling of bonds in future is to avoid the risk of decrease of interest rate whereas the intention behind using forward rates in buying of bonds in future is to avoid the risk of increase in the interest rates. In the financial market of UK, list of spot rates have been given to conduct financial transaction. However, in order to obtained forward rates treasurers have to calculate it through a systematic procedure and calculation. The calculation of obtaining forward rates and bond yield curve has been mentioned below:
Suppose we have a 3-month Libor spot rate of 1.12% and a 5-month Libor spot rate of 1.15%. In order to calculate 3×5 forward rates the following calculation has been performed. Forward rate is denoted by ‘r’
[1+1.12 %( 92/360)] [1+r (61/360)] = [1+1.15 %( 153/360)]
Forward Rate r = 1.19%