The Price of a zero coupon bond is calculated using the following formula :

= FV / ( 1 + r )^{ }^{n}

Where

P = Price of a zero coupon bond ; FV = Face value / Maturity value of the zero coupon bond ; r = Discount rate ; n = Term to maturity ;

In the calculator below insert the values of Face value / Maturity value of the zero coupon bond, Discount rate and Term to maturity to arrive at the price of a zero coupon bond.