2  Strictly speaking, this calculation requires the use of zero-coupon bonds, but it can be approximated using coupon securities. BIS Review 57/2006  1  but also a "term premium" to compensate for the risk in committing to extend credit so far in the future, including the risk of future inflation.
3 At any point in time, then, we can calculate the short-term forward rate ten years ahead based on the yield curve of U.S. Treasury coupon securities.