Spot Rates & Forward Rates | Exam FM | Financial Mathematics Lesson 30 - JK Math

Spot Rates & Forward Rates (Financial Mathematics Lesson 30)

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In this video you will learn about the term structure of interest rates as it is related to spot rates and forward rates.You will see what a spot rate represents and how to use spot rates to calculate different types of forward rates. Additionally, you will learn about the term “yield curve”.

This video series is designed to help students understand the concepts of mathematics of investment and credit, as well as provide a starting point in preparation for the Actuarial Exam FM (Financial Mathematics).

Financial Mathematics requires a proficient understanding of Calculus concepts such as derivative and integration techniques. This implies that a solid understanding in various algebra skills, including manipulating equations, basic factoring methods, solving logarithmic equations, and more, are also required to fully comprehend and learn the concepts of the Financial Mathematics course.

Video Chapters:
0:00 Term Structure of Interest Rates
3:21 What are Spot Rates?
7:48 What are Forward Rates?
11:04 Finding a Forward Rate (1 year period)
20:01 Finding a Forward Rate (Multi-year period)
26:48 Summary of Formulas
27:37 Yield Curves?


📝 Examples Video:    • Spot Rates & Forward Rates Examples | Exam...  

⏩ Next Lesson:    • Macaulay Duration & Modified Duration | Ex...  

⏩ Unit 4 Review:    • Rates of Return & Interest Term Structure ...  

📺 Course Playlist:    • Financial Mathematics  


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