Forward rate

Borrowing/lending rate for a loan to be made at some future date.

The notation to label a particular forward rate is to specify the time from today to the commencement of the loan, followed by the length of the loan.

e.g. 2y3y rate refers to a loan that will commence in 2 years, and the loan will mature 3 years after that.

See also: Spot-forward pricing relationship, Implied forward rate

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