Interest Rates and Time ValueThis is the introduction section for [PRM Exam I](https://financetrain.com/prm/prm-exam-i/).
It pre...

# Calculate the Value of a Zero-coupon Bond

Suppose you have a pure discount bond that will pay $1,000 five years from today. The bond discount rate is 12%.

What is the appropriate price for this bond?

Since there are no interim coupon payments, the value of the bond will simply be the present value of single payment at maturity.

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