Yield Curve: Spot Rate, Forward Rate & Par Yield — Bootstrapping & Arbitrage-Free Pricing
Interactive visualization of the term structure of interest rates. Extract forward rates from spot rates, bootstrap the spot curve from par yields, and price bonds using arbitrage-free discounting. Watch how upward, inverted, flat, and humped yield curves affect forward rates and bond prices. Apply the CFA decision logic: spot rates discount individual cash flows; forward rates are break-even future rates; par yields quote market bonds.
Fundamental