Zero-Coupon Bond Calculator
Calculate the price or yield of a zero-coupon bond. Enter the face value and years to maturity along with either the yield rate (to find price) or the current price (to find yield). See the discount amount at a glance.
Zero-Coupon Bond Calculator
FAQ
What is a zero-coupon bond?
A zero-coupon bond pays no periodic interest. Instead, it is sold at a deep discount to its face value and the investor profits from the difference when the bond matures at full face value.
How is a zero-coupon bond priced?
The price equals the face value divided by (1 + yield)^years. Since there are no coupon payments, the entire return comes from the price appreciation to face value at maturity.
What are common examples of zero-coupon bonds?
U.S. Treasury STRIPS, savings bonds (Series EE), and some corporate bonds are common zero-coupon instruments. They are popular for matching future liabilities like college tuition or retirement needs.