Quickly determine the yield of your zero-coupon bond with our easy-to-use financial calculator. Understand the relationship between price, maturity, and yield to make smarter investment decisions.
Enter the bond’s face value, purchase price, settlement date and maturity date to calculate the yield automatically.
A zero-coupon bond is a type of bond that doesn’t pay periodic interest. Instead, it’s sold at a deep discount and redeemed at face value upon maturity. The difference between the purchase price and the face value represents the investor’s return, also known as the yield.
The yield of a zero-coupon bond can be calculated using the formula:
Yield = [(Face Value / Price)^(1 / Years to Maturity)] – 1
This gives you the annualized return an investor can expect if the bond is held until maturity.
Manual calculations can be time-consuming and prone to error. Our Zero-Coupon Bond Yield Calculator simplifies the process — simply input your bond details and get an instant, accurate yield percentage.
They allow investors to lock in a fixed return and avoid reinvestment risk since there are no periodic interest payments.
They are subject to credit risk (issuer default) and interest rate risk, even though they offer predictable returns if held to maturity.
The results are based on the standard financial formula and provide an accurate yield estimate based on your inputs.
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