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Risk-Free Rate
The return on an investment with zero risk, typically represented by the yield on government bonds.
Forward Rate
An agreed-upon price for a financial transaction that will occur at a future date, used in the trading of currencies, commodities, and financial instruments.
Risk-Free Rate
A speculative return rate on a risk-free investment, often exemplified by government bond yields.
Future Exchange Rate
The future exchange rate is the agreed-upon rate at which two currencies will be exchanged on a specified future date, used in hedging and trading strategies.
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