Enter the face value, bond yield rate, and time to maturity into the calculator to determine the zero-coupon bond.

- Bond Equivalent Yield Calculator (+ Formula)
- Modified Duration Calculator
- Yield To Maturity Calculator
- Imputed Interest Calculator
- Maturity Gap Calculator
- PVBP – Price Value Basis Point Calculator

## Zero Coupon Bond Formula

The following formula is used to calculate the value of a zero-coupon bond.

ZCBV = F / (1+r)^t

- where ZCBV is the zero-coupon bond value
- F is the face value of the bond
- r is the yield/rate
- t is the time to maturity

To calculate a zero coupon bond value, divide the face value by 1 plus the rate raised to the power of the time to maturity.

## Zero Coupon Bond Definition

A zero-coupon bond is a security that does not pay interest but trades at a discount and renders a profit at maturity when the bond is redeemed for its face value.

## Zero Coupon Bond Example

How to calculate a zero coupon bond value?

**First, determine the face value.**Calculate or determine the face value of the bond.

**Next, determine the yield.**Determine the rate/yield of the bond.

**Next, determine the time to maturity.**Calculate the number of years until maturity.

**Finally, calculate the value.**Calculate the value of the bond using the equation above.

## FAQ

**What is a zero coupon bond?**

A zero coupon bond is a bond that does not pay interest but can be redeemed from a profit at it’s time of maturity.