Price of a zero-coupon bond formula
Description of the Price of a zero-coupon bond formula
Formula for the calculation of the price of a zero-coupon bond.
Formula
\[ P = \frac{100}{(1+i)^{t}} \ \]
Symbols
\(i\ \)
Yield
\(t\ \)
Time until the payment of the cash flow (full years and year fraction)