FX forward rate is absolutely quoted in basis point. For example, the spot rate for MYR/USD 3.1010 - 3.1234. The 3 months forward rate is quote by ABC bank as 3.1210 - 3.2000. Thus, the basis point is 200 bps and 766 bps. From here, we can understand that basis point is use to describe or to determine the changes of forward rate in short by using basis point.
The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.
Prime lending rate can be calculated by adding 300 basis points to the Federal Funds Rate, assuming you live in the U.S.
0,05 of a percentage point, i.e the difference of 0,05%. Basis points (bps) refer to the change of percentages. 1 bp = 0,01% change 1% change = 100 bps (The increase of Interest rate from 3,5% to 3.75% can be described as the increase by 25 basis points.)
Forward exchange rate is the agreed upon exchange rate to be used in a forward trade.
The quoted reate is based on continuos compound interest. exp If quoted rate is 6%, then the annual rare is ....e^(0.06) = 1.06183 - 1 = = 6.183%
The national mortgage rate is currently at 4.02%. The Massachusetts mortgage rate is currently lower than the national mortgage rate by 5 basis points.
"Yes, absolutely, the cumberland Building Societies mortgage rate of 6.2% is 200 basis points below the average rate for an adjustable rate mortgage in the United Kingdom."
spot rate-mature rate=basis risk remaining basis=total basis*time proportion
To calculate a forward FX rate, use the formula; Forward rate = Spot rate*(1 + r1)^n ------------- (1 + r2)^n where r1 is the relevent interest rate for currency 1, r2 is the relevent interest rate for currency 2, n is the period in question In terms of the interest rate to be used, it should be the risk free rate for the period in wuestion for each currency.
ans 1=when the rate of reverse reation become equals to rate of forward reaction,such chemical reation is in equilibrium
These contracts are also known as unit-price contracts or schedule contracts. For item rate contracts, contractors are required to quote rates for individual items of work on the basis of a schedule of quantities furnished by the customer. The design and drawings are provided by the customer. The contractor bears almost no risk in these contracts, except escalation in the rates of items quoted by the contractor, as it is paid according to the actual amount of work on the basis of the per-unit price quoted.
The answer will depend on the rate of return at the start.