Valuation of Zero-Coupon Bonds

This video provides an explanation of a zero-coupon bond and proceeds to show how the value and yield are calculated using manual computations as well as with financial calculator (BA II Plus) and Excel spreadsheet.

[@jamesronaldo8003]

That's very helpful, Thanks. Is the answer - PV=772.43 - confirm this

[@blankerhans9659]

Yes got the same

[@gnlilu6972]

Thank You so much for this!

[@akhmisuaritv1490]

What if they have semiannually compounding?

[@kaamelia66]

really really helpful

[@wiscatbijles]

I always find it weird that calculations are done on determining price based on interest rate. In a real market prices are bid that determine the interest rate and not the other way around.