Calculating yield-to-maturity (YTM) for zero-coupon bonds, a crucial aspect of fixed income analysis, involves determining the annualized rate of return on a bond that pays no coupons.
Understanding YTM for zero-coupon bonds is essential for investors seeking fixed income investments that offer capital appreciation without regular interest payments. Historically, zero-coupon bonds have attracted investors seeking long-term capital growth in a low-yield environment.