What would you like to do?

How is Modified Duration calculated for a Zero Coupon Bond?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

3 years zero coupon bond. face value $100 and present market value $75. What will be its Macualay Duration and Modified Duration?
1 person found this useful
Thanks for the feedback!

How or where can you cash in a tiger zero coupon bond?

  Go to your local discount broker, (Schwab, Ameritrade, E*trade, Scottrade) open an account and they will cash it in or liquidate it for you. There will be a fee associat

What are zero-coupon debentures or bonds?

    A zero coupon bond pays no interest. Thus the market price for such a bond is always LESS than the maturity (face) value. The amount by which the bond is priced be

What is relationship between a bond coupon rate and its duration?

  bond coupon rates and yield rates have very similar effects and a very similar relationship to duration, lemme explain, by first explain durations effects in relation to

What is non-zero coupon bonds?

if a bond has finite maturity or limited maturity then we must consider not only the interest rate stream but also the maturity value (face value). regards Sajida Gul

How do investors make money on zero-coupon bonds?

The bond sells at a discount from its face value--sometimes a BIG discount. At the date of maturity, the bond will give you the full face value.

Why do people like zero coupon bonds?

Zero coupon bonds are sold at a price well below face value. Thus, these bonds are appealing to the small investor because they can be bought far more cheaply than ordinary de

What are the interest rates for zero coupon bonds?

They pay no 'coupon' which is the income paid periodically. You make a return by buying at a discount. As an example, if you buy a zero coupon bond for $86.26, maturing at $10

How do bondholders get a return on zero coupon bonds?

Zero coupon bonds do not pay interest and are therefore sold at a steep discount to face value depending on the maturity date of the bond. Due to the time value of money, the

What is zero coupon and how is it calculated to maturity?

A zero coupon bond is a bond which pays no interim cashflow (i.e. coupons). We usually price on the basis of percentage of Face Value (i.e. $100). So if you expected 5% return

What is the taxation of zero coupon bonds held to maturity?

Zero coupon bonds issued by the US Treasury are issued at a  discount to face value. An investor holding zero coupon bonds is  paid the full face value when the zero coupon