Price of a zero-coupon bond formula

Tags: bonds interest rate instruments pricing and analysis

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)

Additional information related to this formula

Related definitions from the glossary of financial terms

Bond • Yield • Zero-coupon bond

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