Zero Coupon Bond Calculator
Introduction & Importance
Zero coupon bonds are a type of bond that does not pay any interest until maturity. Instead, they are sold at a deep discount to their face value, and the investor receives the full face value at maturity. Calculating the price of a zero coupon bond is crucial for investors to understand the potential return on their investment.
For more information on zero coupon bonds, see the Investopedia guide and the U.S. Department of the Treasury’s FAQs.