Zero Coupon Bond Payment Per Period Calculator
Introduction & Importance
Zero coupon bonds are a type of debt obligation that does not pay interest, but rather is issued at a deep discount to its face value. The investor’s return comes from the appreciation of the bond to its face value at maturity. Calculating the payment per period for zero coupon bonds is crucial for understanding the cash flows and yield of these investments.
Learn more about zero coupon bonds from the U.S. Department of the Treasury