Simple rate for 1 year ↩

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created: 2022-03-04 16:05:37
modified: 2022-03-04 16:15:52

• Right now (at ) I pay you USD
• In return, at you will pay me a fixed amount

Let's denote by the fixed amount that you will pay. This is in connection with the discount factor:

This is called the currently observed simple rate for 1 year.