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Zero Coupon Bond Value

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Jul 17, 2014, 12:05:08 PM
`"Zero Coupon Bond Value" = F /(1+ r )^ t `
`"Face value"`
`"Rate"(r)`
`"Time"(t)`
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98ac99c1-0daa-11e4-b7aa-bc764e2038f2

This equation computes the Zero coupon bond value.

The 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. This bond does not pay coupon payments and instead pays one lump sum at maturity . It is also known as deep or pure discount bond.

INPUTS

  • F= Face value of bond
  • t= Time to maturity
  • r= Rate or yield

This equation, Zero Coupon Bond Value, is used in 1 page
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