Zero Coupon Bond Calculator Tool

Zero Coupon Bond Calculator

Zero Coupon Bond Calculator

Zero Coupon Bond Calculator

Component Description
Face Value The amount paid to the bondholder at maturity.
Purchase Price The price at which the zero-coupon bond is purchased.
Years to Maturity The number of years until the bond matures.
Yield to Maturity (YTM) The annualized rate of return on the bond if held until maturity.
Formula YTM = [(Face Value / Purchase Price)^(1 / Years to Maturity)] – 1
Purpose Used to calculate the yield of a zero-coupon bond, helping investors evaluate the bond’s return over its holding period.

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