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Zero Coupon Bond Value Calculator

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✖Face Value is the nominal value or dollar value of a security stated by the issuer.ⓘ Face Value [FV]			+10% -10%
✖A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.ⓘ Rate of Return [RoR]			+10% -10%
✖Time to Maturity is the time required to mature a bond.ⓘ Time to Maturity [T]			+10% -10%

✖Zero Coupon Bond Value is referred to as a pure discount bond or simply discount bond, is a bond that does not pay coupon payments, and instead pays one lump sum at maturity.ⓘ Zero Coupon Bond Value [V]

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Zero Coupon Bond Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity
V = FV/(1+RoR/100)^T
This formula uses 4 Variables

Variables Used

Zero Coupon Bond Value - Zero Coupon Bond Value is referred to as a pure discount bond or simply discount bond, is a bond that does not pay coupon payments, and instead pays one lump sum at maturity.
Face Value - Face Value is the nominal value or dollar value of a security stated by the issuer.
Rate of Return - A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
Time to Maturity - Time to Maturity is the time required to mature a bond.

STEP 1: Convert Input(s) to Base Unit

Face Value: 800 --> No Conversion Required
Rate of Return: 4 --> No Conversion Required
Time to Maturity: 11 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

V = FV/(1+RoR/100)^T --> 800/(1+4/100)^11

Evaluating ... ...

V = 519.664745250614

STEP 3: Convert Result to Output's Unit

519.664745250614 --> No Conversion Required

FINAL ANSWER

519.664745250614 ≈ 519.6647 <-- Zero Coupon Bond Value

(Calculation completed in 00.004 seconds)

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< Bond Yield Calculators

Coupon Bond Valuation

LaTeX Go Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year))

Yield to Maturity

LaTeX Go Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)

Bank Discount Yield

LaTeX Go Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100

Current Bond Yield

LaTeX Go Current Bond Yield = Coupon Payment/Current Bond Price

Zero Coupon Bond Value Formula

LaTeX Go

Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity
V = FV/(1+RoR/100)^T

How to Calculate Zero Coupon Bond Value?

Zero Coupon Bond Value calculator uses Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity to calculate the Zero Coupon Bond Value, Zero Coupon Bond Value is referred to as a pure discount bond or simply discount bond, is a bond that does not pay coupon payments, and instead pays one lump sum at maturity. Zero Coupon Bond Value is denoted by V symbol.

How to calculate Zero Coupon Bond Value using this online calculator? To use this online calculator for Zero Coupon Bond Value, enter Face Value (FV), Rate of Return (RoR) & Time to Maturity (T) and hit the calculate button. Here is how the Zero Coupon Bond Value calculation can be explained with given input values -> 519.6647 = 800/(1+4/100)^11.

FAQ

What is Zero Coupon Bond Value?

Zero Coupon Bond Value is referred to as a pure discount bond or simply discount bond, is a bond that does not pay coupon payments, and instead pays one lump sum at maturity and is represented as V = FV/(1+RoR/100)^T or Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity. Face Value is the nominal value or dollar value of a security stated by the issuer, A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost & Time to Maturity is the time required to mature a bond.

How to calculate Zero Coupon Bond Value?

Zero Coupon Bond Value is referred to as a pure discount bond or simply discount bond, is a bond that does not pay coupon payments, and instead pays one lump sum at maturity is calculated using Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity. To calculate Zero Coupon Bond Value, you need Face Value (FV), Rate of Return (RoR) & Time to Maturity (T). With our tool, you need to enter the respective value for Face Value, Rate of Return & Time to Maturity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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