Converting Spot rate to forward Rate:

A spot rate is used by buyers and sellers looking to make an immediate purchase or sale, while a forward rate is considered
to be the market's expectations for future prices. It can serve as an economic indicator of how the market expects the future
to perform, while spot rates are not indicators of market expectations, and are instead the starting point to any financial
transaction.

Therefore, it is normal for forward rates to be used by investors, who may believe that they have knowledge or information
on how the prices of specific items will move over time. If a potential investor believes that real future rates will be higher or
lower than the stated forward rates at the present date, it could signal an investment opportunity.

Converting From Spot to Forward Rate

For simplicity, consider how to calculate the forward rates for zero-coupon bonds. A basic formula for calculating forward
rates looks like this: