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Zero Coupon Bond Price Calculator

Work out zero coupon bond price instantly with clear inputs, formula shown and shareable results.

About Zero Coupon Bond Price Calculator

A zero-coupon bond pays only face value at maturity, so its price is simply that face value discounted at the yield. With no interim cash flows its duration equals its maturity, making it the most rate-sensitive bond of its term.

Formula

Zero-coupon price

P = F / (1 + y)^t; duration = t

Worked example

With the default values below, Zero Coupon Bond Price Calculator returns Price Of The Bond of $48,519.39. Change any input above and every figure here is recalculated in your browser.

Inputs used

Face Valueminimum 0
100,000
Yield To Maturityaccepts 0–100 %
7.5 %
Years To Maturityaccepts 0.5–40
10

Results

Price Of The Bond
$48,519.39
Discount To Face Value
$51,480.61
Total Return If Held To Maturity
106.103%
Macaulay Duration
10.00 years

Step by step

  1. 1Values used
  2. 2Zero-coupon price
  3. 3Price Of The Bond= 48,519.39
  4. 4Discount To Face Value= 51,480.61
  5. 5Total Return If Held To Maturity= 106.103
  6. 6Macaulay Duration= 10.00 years

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why are zeros so rate sensitive?

All the value sits in one distant payment, so discounting bites hardest. A 20-year zero moves roughly twice as much as a 10-year one.

Is there tax on imputed interest?

Many regimes tax the annual accretion even though no cash is received — check before holding zeros outside a tax shelter.

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