How is Modified Duration calculated for a Zero Coupon Bond?

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3 years zero coupon bond. face value $100 and present market value $75. What will be its Macualay Duration and Modified Duration?
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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 associated wit

What are zero-coupon debentures or bonds?

\n. \nA 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 below i

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 inter

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 Gu

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 $1

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% retu

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

Zero coupon bonds issued by the US Treasury are issued at adiscount to face value. An investor holding zero coupon bonds ispaid the full face value when the zero coupon bond m
In Coupons

What is so special about Zero Coupon Municipal Bonds?

Zero Coupon Municipal Bonds are special because, unlike other bonds, they have no periodic interest payments. Rather, the investor receives one payment at maturity. This payme
In Coupons

What is the advantage of buying zero-coupon bonds?

The advantage of buying zero-coupon bonds is that when they reach maturity, the investor then receives the full face value of the bond. These bonds became popular in the 1980