Zero-coupon rate from the discount factor formula
Description of the Zero-coupon rate from the discount factor formula
Formula for the calculation of the zero-coupon interest rate for a given maturity from the discount factor
Formula
\[ r_{zero,n}=\left( \frac{1}{ PVf_{n}} \right)^{\frac{1}{n}} \ \]
Symbols
\(n\ \)
Number of periods
\(PVf_{n}\ \)
Discount factor for maturity n