One Example

Suppose you buy 1 fyUSDT at a price of 0.95 USDT, settled a full year from today. Your rate of return is fixed because you have a fixed amount of invested capital (0.95 USDT) and a known amount of future returns (1 USDT, one year from now). The price of a zero-coupon bond is calculated by the following formula, where P is the price of the bond, M is the value of the underlying asset at maturity, r is the interest rate, and n is the number of years to maturity. =m(1+ ) P=( 1+r )n meters Substituting our values ​​into the formula and solving for r gives us our interest rate: 0.95=1 (1+ )1↔ =1 0.95−1=0.05260.95=( 1+r)1 of 1↔r=0.951 of −1=0.0526