Calculate Rate Of Return Zero Coupon Bond

Introduction & Importance

Zero coupon bonds are a type of debt obligation that does not pay interest. Instead, they are sold at a deep discount to their face value and the investor receives the full face value at maturity. Calculating the rate of return on these bonds is crucial for investors to understand their potential profit.

Learn more about zero coupon bonds from the U.S. Treasury

Understand zero coupon bonds from Investopedia