Zero Coupon Bonds Calculator

Introduction & Importance

Zero coupon bonds are a type of bond that does not pay interest, but is sold at a deep discount to its face value. The difference between the face value and the purchase price is the interest earned…

How to Use This Calculator

1. Enter the face value of the bond.
2. Enter the discount rate.
3. Enter the maturity date.
4. Click “Calculate”.

Formula & Methodology

The formula to calculate the price of a zero coupon bond is: P = FV / (1 + r)^n, where…

Real-World Examples

Data & Statistics

Face Value	Discount Rate	Maturity Date	Price

Expert Tips

• Consider the risk of default.
• Understand the tax implications.
• Compare with other investment options.

Interactive FAQ

What is the difference between a zero coupon bond and a regular bond?

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For more information, see the U.S. Department of the Treasury and the Investopedia.