Calculate Total Return Zero Coupon Bond
Introduction & Importance
Zero coupon bonds are a type of bond that does not pay interest. Instead, they are sold at a discount to their face value and appreciate over time until they reach their face value at maturity. Calculating the total return on these bonds is crucial for investors to understand their potential profits.
For more information, see the TreasuryDirect guide on zero coupon bonds and the Investopedia explanation.