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Zero Coupon Bond Effective Yield Calculator

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✖Face Value is the nominal value or dollar value of a security stated by the issuer.ⓘ Face Value [FV]			+10% -10%
✖The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value [PV]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n]			+10% -10%

✖Zero Coupon Bond Effective Yield is used to calculate the periodic return for a zero coupon bond, or sometimes referred to as a discount bond.ⓘ Zero Coupon Bond Effective Yield [ZCB Yield]

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Formula

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Zero Coupon Bond Effective Yield

Formula

ZCB Yield = {(\frac{FV}{PV})}^{\frac{1}{n}} - 1

Example

8.42809 = {(\frac{800}{9})}^{\frac{1}{2}} - 1

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Zero Coupon Bond Effective Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1
ZCB Yield = (FV/PV)^(1/n)-1
This formula uses 4 Variables

Variables Used

Zero Coupon Bond Effective Yield - Zero Coupon Bond Effective Yield is used to calculate the periodic return for a zero coupon bond, or sometimes referred to as a discount bond.
Face Value - Face Value is the nominal value or dollar value of a security stated by the issuer.
Present Value - The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

STEP 1: Convert Input(s) to Base Unit

Face Value: 800 --> No Conversion Required
Present Value: 9 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ZCB Yield = (FV/PV)^(1/n)-1 --> (800/9)^(1/2)-1

Evaluating ... ...

ZCB Yield = 8.42809041582063

STEP 3: Convert Result to Output's Unit

8.42809041582063 --> No Conversion Required

FINAL ANSWER

8.42809041582063 ≈ 8.42809 <-- Zero Coupon Bond Effective Yield

(Calculation completed in 00.004 seconds)

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< Bond Yield Calculators

Coupon Bond Valuation

Go Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year))

Yield to Maturity

Go Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)

Bank Discount Yield

Go Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100

Current Bond Yield

Go Current Bond Yield = Coupon Payment/Current Bond Price

Zero Coupon Bond Effective Yield Formula

Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1
ZCB Yield = (FV/PV)^(1/n)-1

How to Calculate Zero Coupon Bond Effective Yield?

Zero Coupon Bond Effective Yield calculator uses Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1 to calculate the Zero Coupon Bond Effective Yield, Zero Coupon Bond Effective Yield is used to calculate the periodic return for a zero-coupon bond, or sometimes referred to as a discount bond. Zero Coupon Bond Effective Yield is denoted by ZCB Yield symbol.

How to calculate Zero Coupon Bond Effective Yield using this online calculator? To use this online calculator for Zero Coupon Bond Effective Yield, enter Face Value (FV), Present Value (PV) & Number of Periods (n) and hit the calculate button. Here is how the Zero Coupon Bond Effective Yield calculation can be explained with given input values -> 8.42809 = (800/9)^(1/2)-1.

FAQ

What is Zero Coupon Bond Effective Yield?

Zero Coupon Bond Effective Yield is used to calculate the periodic return for a zero-coupon bond, or sometimes referred to as a discount bond and is represented as ZCB Yield = (FV/PV)^(1/n)-1 or Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1. Face Value is the nominal value or dollar value of a security stated by the issuer, The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate Zero Coupon Bond Effective Yield?

Zero Coupon Bond Effective Yield is used to calculate the periodic return for a zero-coupon bond, or sometimes referred to as a discount bond is calculated using Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1. To calculate Zero Coupon Bond Effective Yield, you need Face Value (FV), Present Value (PV) & Number of Periods (n). With our tool, you need to enter the respective value for Face Value, Present Value & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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