How to Calculate Yield to Maturity of a Zero-Coupon Bond

The formula for calculating the yield to maturity on a zero-coupon bond is: Yield To Maturity=(Face ValueCurrent Bond P… See more

CouponFollow Extension

6%
OFF

Bond Calculator

1 week from now

Number of periods (N) = 10 years × 2 = 20 periods. Discount rate per period (r) = 6% / 2 = 3% or 0.03. The bond price is calculated by discounting each semi-annual payment and the face …

calculator.net

10%
OFF

Zero Coupon Bond Calculator – What Is The Market Price? - DQYDJ

1 week from now

Substituting into the formula: So a 10 year zero coupon bond paying 10% interest with a $1000 face value would cost you $385.54 today. In the opposite direction, you can compute the yield …

dqydj.com

$600
OFF

Bond Yield To Maturity (YTM) Calculator - DQYDJ

1 week from now

This makes calculating the yield to maturity of a zero coupon bond straight-forward: Let's take the following bond as an example: Current Price: $600. Par Value: $1000. Years to Maturity: 3. …

dqydj.com

6%
OFF

Zero Coupon Bond Value - Formula (with Calculator) - Finance …

1 week from now

Example of Zero Coupon Bond Formula. 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 …

financeformulas.net

$1000
OFF

Zero Coupon Bond Calculator

1 week from now

Key Concepts of Zero Coupon Bonds. 1. Face Value. The face value is the amount the bond will pay at maturity. For example, if you purchase a zero coupon bond with a face value of $1,000, …

calculator.dev

5%
OFF

Yield To Maturity Calculator | Calculate YTM

1 week from now

Oct 17, 2024 · In the yield-to-maturity calculator, you can choose from six different frequencies, from annual to daily. In our example, Bond A has a coupon rate of 5% and an annual …

omnicalculator.com

18%
OFF

Value And Yield Of A Zero-Coupon Bond | Formula & Example

1 week from now

Dec 31, 2012 · The bonds were issued at a yield of 7.18%. The forecasted yield on the bonds as at 31 December 20X3 is 6.8%. Find the value of the zero-coupon bond as at 31 December …

xplaind.com

FAQs about How to Calculate Yield to Maturity of a Zero-Coupon Bond Coupon?

How do you calculate a zero coupon bond yield?

Log real and nominal zero coupon bond yields with maturity n are defined by y n, t = − log ( P n, t) / n and y n, t $ = − log ( P n, t $) / n. An analytic solution exists for the one-period consumption claim, the first claim in the infinite sum (24). ...

How to determine the yield of a zero coupon bond?

...

What is a zero coupon bond effective yield?

The zero coupon bond effective yield formula is used to calculate the periodic return for a zero coupon bond, or sometimes referred to as a discount bond. A zero coupon bond is a bond that does not pay dividends (coupons) per period, but instead is sold at a discount from the face value. ...

How do you calculate the effective yield on a discount bond?

The formula for calculating the effective yield on a discount bond, or zero coupon bond, can be found by rearranging the present value of a zero coupon bond formula: This formula can be written as This formula will then become By subtracting 1 from the both sides, the result would be the formula shown at the top of the page. ...