Forward Rate as a Hedgeable RateA natural question about forward rates is how well they do at predicting future interest rates.The forward rate may never be realized but is important in what it tells investors about his expectation relative to what the market consensus expects.Some market participants prefer not to talk about forward rates as being market consensus rates but refer to forward rates as being hedgeable rates.For example, by buying the one-year security, the investor can hedge the six-month rate six months from now.