spot rates and forward rates

[audia4]

Could someone explain with a concrete definition and example of what spot rates and forward rates are, and what the differences betweem them is?

Thank you.

[krzysio]

Could someone explain with a concrete definition and example of what spot rates and forward rates are, and what the differences betweem them is?

Thank you.

Spot rate for maturity t is the interest rate on the zero coupon bond maturing at time t.

Forward rate from time s to time t, with s < t, is the interest rate I such that if you invested a dollar in a zero coupon maturing at time s, and investet at the rate I until time t, you would end up with the same amount as if invested in a zero coupon bond maturing at time t.

Yours,
Krzys'

[audia4]

Hello. thank you for your response. Is it possible to offer some comments regarding the other problems I posted, as no one has answered them yet. THank you.

[krzysio]

Hello. thank you for your response. Is it possible to offer some comments regarding the other problems I posted, as no one has answered them yet. THank you.

I am sorry, but I do not know what you mean by "the other problem". Must be in some other thread. It would be very helpful if you could just state it.
Yours,
Krzys'