New answers tagged forward-rate
1
If you want to calculate the forward rate given semi-annual compounding then the answer should be:
\begin{equation}
F(0,t_a,t_b)=\Bigg(\sqrt[2*(t_b-t_a)]{\frac{(1 + \frac{r_b}{2})^{2*t_b}}{(1 + \frac{r_a}{2})^{2*t_a}}}-1\Bigg)*2
\end{equation}
This is derived by the fact that :
\begin{equation}
\Bigg(1+\frac{r_b}{2}\Bigg)^{2*t_b} = \Bigg(1+\frac{r_a}{2}\...
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