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fx_forward-rate

Read-onlyIdempotent

Bootstrap implied forward rates from a spot yield curve. Input spot rates at various tenors and forward start/end dates to derive forward rates between each tenor pair.

Instructions

Bootstrap forward rates from a spot yield curve.

Use when bootstrapping forward rates from a yield curve. Provide spot rates at various tenors. Returns: implied forward rates between each tenor pair.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
compoundingNoCompounding conventioncontinuous
forward_endYesForward period end (years)
yield_curveYesArray of yield curve points
forward_startYesForward period start (years)
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnlyHint=true, idempotentHint=true, and destructiveHint=false. The description adds value by stating the output (implied forward rates) and the process (bootstrapping), which goes beyond the annotations. No contradictions.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is extremely concise with three short sentences, each serving a distinct purpose: stating the function, providing usage guidance, and describing the output. No unnecessary words, and the most important information is front-loaded.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness3/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

The description covers the basic purpose and output but lacks details about the bootstrapping method (e.g., interpolation), constraints (e.g., forward_start < forward_end), or edge cases. Given the tool's moderate complexity (4 parameters, no output schema), more information would improve completeness.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so the baseline is 3. The description does not add new parameter-level information beyond what the schema already provides; it only summarizes the overall goal. Thus, it meets but does not exceed the baseline.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool bootstraps forward rates from a spot yield curve, specifying the verb (bootstrap), resource (forward rates), and input (spot yield curve). It also mentions the output (implied forward rates between tenor pairs), making the purpose unambiguous.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description explicitly states 'Use when bootstrapping forward rates from a yield curve,' providing clear context for when to use this tool. However, it does not mention when not to use it or provide alternatives, which is a minor gap given the many sibling tools.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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