How does the Zero-Coupon Bond Price Calculator work?
Free Zero-Coupon Bond Price Calculator - This calculator calculates the price of a zero-coupon bond given a face value, yield rate, and term.
This calculator has 3 inputs.
This calculator has 3 inputs.
What 1 formula is used for the Zero-Coupon Bond Price Calculator?
Zero-Coupon Bond Value = Face/(1 + r)t
What 6 concepts are covered in the Zero-Coupon Bond Price Calculator?
- bond
- a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
- coupon
- the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
- face value
- the price that the issuer pays at the time of maturity
- price
- the amount of money expected, required, or given in payment for something
- yield rate
- How much an investment returns in terms of interest rate
- zero coupon bond
- A bond where the face value is paid at the time of maturity. No coupons are paid.
Zero-Coupon Bond Price Calculator Video
