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Zero Coupon Bond Value Formula

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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. Check FAQs

V = \frac{FV}{{(1 + \frac{RoR}{100})}^{T}}

V - Zero Coupon Bond Value?FV - Face Value?RoR - Rate of Return?T - Time to Maturity?

Zero Coupon Bond Value Example

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Here is how the Zero Coupon Bond Value equation looks like with Values.

Here is how the Zero Coupon Bond Value equation looks like with Units.

Here is how the Zero Coupon Bond Value equation looks like.

519.6647 = \frac{800}{{(1 + \frac{4}{100})}^{11}}

519.6647 = \frac{800}{{(1 + \frac{4}{100})}^{11}}

519.6647 = \frac{800}{{(1 + \frac{4}{100})}^{11}}

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Zero Coupon Bond Value Solution

Follow our step by step solution on how to calculate Zero Coupon Bond Value?

FIRST Step Consider the formula

V = \frac{FV}{{(1 + \frac{RoR}{100})}^{T}}

Next Step Substitute values of Variables

∴

V = \frac{800}{{(1 + \frac{4}{100})}^{11}}

Next Step Prepare to Evaluate

∴

V = \frac{800}{{(1 + \frac{4}{100})}^{11}}

Next Step Evaluate

∴

V = 519.664745250614

LAST Step Rounding Answer

∴

V = 519.6647

Zero Coupon Bond Value Formula Elements

Variables

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.

Symbol: V

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Zero Coupon Bond Value

Face Value

Face Value is the nominal value or dollar value of a security stated by the issuer.

Symbol: FV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Face Value

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.

Symbol: RoR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Return

Time to Maturity

Time to Maturity is the time required to mature a bond.

Symbol: T

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Time to Maturity

Other formulas in Bond Yield category

Go Yield to Maturity

YTM = \frac{CP + (\frac{FV - Price}{Yrs})}{\frac{FV + Price}{2}}

Go Current Bond Yield

CBY = \frac{CP}{CBP}

Go Coupon Bond Valuation

CB = C A \cdot (\frac{1 - {(1 + YTM)}^{- n PYr}}{YTM}) + (\frac{P vm}{{(1 + YTM)}^{n PYr}})

Go Bank Discount Yield

BDY = (\frac{D}{FV}) \cdot (\frac{360}{DTM}) \cdot 100

How to Evaluate Zero Coupon Bond Value?

Zero Coupon Bond Value evaluator uses Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity to evaluate 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 evaluate Zero Coupon Bond Value using this online evaluator? To use this online evaluator for Zero Coupon Bond Value, enter Face Value (FV), Rate of Return (RoR) & Time to Maturity (T) and hit the calculate button.

FAQs on Zero Coupon Bond Value

What is the formula to find Zero Coupon Bond Value?

The formula of Zero Coupon Bond Value is expressed as Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity. Here is an example- 519.6647 = 800/(1+4/100)^11.

How to calculate Zero Coupon Bond Value?

With Face Value (FV), Rate of Return (RoR) & Time to Maturity (T) we can find Zero Coupon Bond Value using the formula - Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity.

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Zero Coupon Bond Value Formula

Zero Coupon Bond Value Example

Zero Coupon Bond Value Solution

Zero Coupon Bond Value Formula Elements

Other formulas in Bond Yield category

How to Evaluate Zero Coupon Bond Value?

FAQs on Zero Coupon Bond Value

Variable Name