# Zero Coupon Price Calculator

\$500
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Calculating Yield to Maturity on a Zero-coupon Bond. YTM = (M/P) 1/n - 1. variable definitions: YTM = yield to maturity, as a decimal (multiply it by 100 to convert it to percent) M = maturity value; P = price; n = years until maturity; Let's say a zero coupon bond is issued for \$500 and will pay \$1,000 at maturity in 30 years.

\$100
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A 5 year zero coupon bond is issued with a face value of \$100 and a rate of 6%. Looking at the formula, \$100 would be F, 6% would be r, and t would be 5 years. After solving the equation, the original price or value would be \$74.73. After 5 years, the bond could then be redeemed for the \$100 face value.

\$463.
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The difference between the current price of the bond, i.e., \$463.19, and its Face Value, i.e., \$1000, is the amount of compound interest that will be earned over the 10-year life of the Bond.. Thus Cube Bank will pay \$463.19 and will receive \$1000 at the end of 10 years, i.e., on the maturity of the Zero Coupon Bond, thereby earning an effective yield of 8%.

00%
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Calculate price of a zero coupon bond in Excel For example there is 10-years bond, its face value is \$1000, and the interest rate is 5.00%. Before the maturity date, the bondholder cannot get any coupon as below screenshot shown.

\$1,
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Consider a \$1,000 zero-coupon bond that has two years until maturity.The bond is currently valued at \$925, the price at which it could be purchased today. The formula would look as follows: (1000 ...

\$2,
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Divide the face value of the bond to calculate the price to pay for the zero-coupon bond to achieve your desired rate of return. Zero-Coupon Bond Price Example For example, say you want to earn a 6 percent rate of return per year on a bond with a face value of \$2,000 that will mature in two years.

7\%
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Now let’s use our formula and apply the values to our variables to calculate the zero-coupon bond value: Price = \dfrac{26{,}000}{(1 + 7\%)^{4}} = \\$19{,}835.28. If Edward decides to buy the bond today, he will pay 19,835.28, which is 76.29% of the Face Value. When the bond matures, he will earn \$6,164.73 for an annual interest rate of 7%.

25%
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The 1-year bond has a coupon rate of zero and is priced at 97.0625 per 100 of par value. This one is easy: The price of zero-coupon bond is its discount factor. So, the 1-year discount factor, denoted DF1, is simply. 0.970625. The 2-year bond in Table 5.1 has a coupon rate of 3.25% and is priced at 100.8750.

30%
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Zero Coupon Bond Calculator - Miniwebtool. 30% off Offer Details: The Zero Coupon Bond Calculator is used to calculate the zero-coupon bond value.Zero Coupon Bond Definition. A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity.

\$1000
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A better way to price the bonds is to discount each cash flow with the spot rate (zero coupon rate) for its respective maturity. Example 1. Let’s take an example. Suppose we want to calculate the value of a \$1000 par, 5% coupon, 5 year maturity bond. We also have the following spot rates for the next 5 years:

\$1
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The price of a zero-coupon bond is [math](1+y)^{-n}[/math] per \$1 face, where [math]y[/math] is the yield and [math]n[/math] is the number of periods to maturity. The ...

73%
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\$500
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Zero Coupon Bond Value Calculator: Calculate Price, Yield ... Calculating Yield to Maturity on a Zero-coupon Bond. YTM = (M/P) 1/n - 1. variable definitions: YTM = yield to maturity, as a decimal (multiply it by 100 to convert it to percent) M = maturity value; P = price; n = years until maturity; Let's say a zero coupon bond is issued for \$500 and will pay \$1,000 at maturity in 30 years.