Calculate Zero Coupon Bonds
Introduction & Importance
Zero coupon bonds (ZCBs) are bonds that do not pay interest. Instead, they are sold at a deep discount to their face value and redeemed at maturity for that face value. ZCBs are important because they allow investors to lock in future cash flows at today’s interest rates.
For more information, see the U.S. Department of the Treasury and Investopedia.