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Zero Coupon Bond Calculator
Price and yield of a bond with no periodic coupons.
Enter values to see your result
Frequently asked questions
What is a zero-coupon bond?
Sold at deep discount, pays no coupons, redeemed at face value. Your return = (face - price). Example: pay ₹500 today, receive ₹1000 after 10 years.
Examples in India?
KVP (Kisan Vikas Patra) — doubles in ~9.5 years = zero-coupon structure. Corporate deep-discount bonds (DDBs). NHAI, REC bonds sometimes.
Advantage vs coupon bond?
No reinvestment risk — you know exact return if held to maturity. Great for specific-date goals (child education, retirement).
Tax treatment?
In India, gain treated as interest income or capital gain depending on structure. Most DDBs are taxable as long-term capital gains (if >3 years).