Rytvae Consulting · Think Right · Invest Right
Zero-Coupon Bond Calculator
Result
Chart
Show formula & working
Price = F ÷ (1 + y ÷ m)m × t · Yield = ((F ÷ Price)1/(m t) − 1) × m
Details
How this works
A zero-coupon bond pays no interest along the way; it is bought at a discount and repaid at face value.
Treasury bills and STRIPS are zero-coupon instruments.
Frequently asked questions
Why are zero-coupon prices so sensitive to yields?
All the cash comes at the end, so their duration equals their maturity.
How is the return taxed?
Depends on the instrument; check the current rules.