Zero Coupon Bond Yield Calculator

A Zero Coupon Bond or a Deep Discount Bond is a bond that does not pay periodic coupon or interest. These bonds are issued at a discount to their face value and therefore the difference between the face value of the bond and its issue price represents the interest yield of the bond. This calculator can be used to calculate the effective annual yield or yield to maturity (YTM) of investment in such bond when the bond is held till maturity.

Note: The yield calculated by this calculator is Excel's XIRR equivalent annualized yield for the actual duration of the bond. For periods less than one year, the calculator returns Money Market Yield.

Use Bond YTM Calculator  for calculating yield on a coupon paying bond.