... 16Forward Contracts 325Definitions 325Forward Price of a Deposit or a Zero Coupon Bond 326Using Forwards to Hedge Borrowing Costs or Loan Proceeds 328Forward Price of a Coupon Bond 329Forward ... date. For the purposes of this chapter, all forward rates aretaken to be six-month rates some number of semiannual periods forward.Forward rates, however, can be defined with any term and any forwardstart for ... aspot loan for six months and a loan, six months forward, with a term ofsix months.Define r(t) to be the semiannually compounded rate earned on a six-month loan t–.5 years forward. For example,...