Example 5 – Using the RATE Function to Calculate the Interest Rate for a Zero Coupon Bond We will use the RATE function to calculate the Yield to Maturity-YTM (r), which is the interest rate (r) for a zero coupon bond. Steps: Use the following function in cell C8. =RATE(C7,0,C6...
Since the Interest accrued is discounted from the Par value of such Bonds at purchase, which effectively enables Investors of Zero Coupon Bonds to buy a greater number of such bonds compared to any other Coupon Bearing Bond. Formula Let us understand the formula to use azero coupon bond calcul...
Thus, zero coupon bonds are just one type of original issue discount bond. Any nonconvertible bond whose coupon rate is set below the going market rate at the time of its issue will sell at a discount, and it will be classified (for tax and other pur- poses) as an OID bond. Shor...
Coupon Type Zero Coupon Annual Coupon Rate - Coupon Frequency Annually Seniority Senior Unsecured Exchange Listed No Reference Rate - ISIN XS3041914733 CUSIP YQ7832856 Bond Currency USD Total Issue Size 50,000,000 Min. Investment Quantity (Nominal) USD 100,000 Incremental Quantity (Nominal) USD 100...
Coupon Type Zero Coupon Annual Coupon Rate - Coupon Frequency Annually Seniority Unsecured Exchange Listed No Reference Rate - ISIN SGXZ29257813 CUSIP YT6184139 Bond Currency SGD Total Issue Size 7,100,000,000 Min. Investment Quantity (Nominal) SGD 1,000 Incremental Quantity (Nominal) SGD 1,000...
Zero Coupon Annual Coupon Rate - Coupon Frequency Annually Seniority Senior Unsecured Exchange Listed No Reference Rate - ISIN XS2899027085 CUSIP YV5821496 Bond Currency HKD Total Issue Size 300,000,000 Min. Investment Quantity (Nominal) HKD 1,000,000 ...