Zero-coupon rate from the discount factor formula

Tag: time value of money

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

r_{z e r o, n} = {(\frac{1}{P V f_{n}})}^{\frac{1}{n}}

n

Number of periods

P V f_{n}

Discount factor for maturity n