Work out forward rate instantly with clear inputs, formula shown and shareable results.
The forward rate is the future borrowing rate already implied by today's yield curve: investing to the far date must pay the same as investing to the near date and rolling at the forward. An upward-sloping curve therefore implies forward rates above spot.
Implied forward
(1+f)^(t2-t1) = (1+z2)^t2 / (1+z1)^t1
Only in a no-arbitrage sense. It is the break-even rate, not a prediction, and it embeds a term premium.
Then the forward rate falls below both spot rates, which is why inversions are read as expected rate cuts.