Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Implied Rate

Updated on 2023-08-29T11:58:49.189624Z

Implied rate is calculated by dividing forward interest rate over spot interest rate raised to the power of (1/time)-1.

Mathematically:

implied rate = (forward / spot) ^ (1 / time) - 1

It allows investors to assess return across investments.