How To Calculate The Duration Of A Zero Coupon Bond

Zero Coupon Bond Duration Calculator

Introduction & Importance

Zero coupon bonds are a unique type of bond that does not pay interest. Instead, they are sold at a deep discount to their face value and redeemed at maturity for the full face value. Calculating the duration of a zero coupon bond is crucial for investors to manage their portfolios and understand the bond’s sensitivity to interest rate changes.

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