An interest rate curve derived point by point from the traditional yield curve, the forward curve is used to price many interest rate derivative instruments. The forward curve shows the implied forward interest rate for each period covered by the yield curve. The diagrams under the listing for yield curve illustrate forward rate curves for both normal and inverted yield curve environments. Also called Forward Rate, Forward Rate Curve. See also Implied Forward Interest Rate, Term Structure of Interest Rates, Yield Curve (diagrams), Zero Coupon Yield Curve.
