forward interest rate is the interest rate level from a certain point in the future to another point in the given spot interest rate. After determining the yield curve, all forward interest rates can be obtained according to the spot interest rate on the yield curve, and the forward interest rate is closely related to the yield curve. In modern financial analysis, forward interest rate is widely used. They can predict the market's expectation of future interest rate trends and are reference tools for the central bank to formulate and implement monetary policies. In the mature market, the pricing of almost all interest rate derivatives depends on the forward interest rate

The content of this article comes from: China Law Publishing House, New Financial Law Encyclopedia (Fifth Edition).