What Is a Zero Coupon Yield Curve?

The zero-yield bond yield curve refers to the yield curve formed by zero-coupon bonds, also known as the spot yield curve in English. It is common practice in the market to derive this curve from the par yield curve according to the theory, and it is often used to calculate the discount factor. A parity yield curve is a yield curve that consists of bonds that are selling at par.

Zero coupon bond yield curve

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The zero-yield bond yield curve refers to the yield curve formed by zero-coupon bonds, also known as the spot yield curve in English. It is common practice in the market to derive this curve from the par yield curve according to the theory, and it is often used to calculate the discount factor. A parity yield curve is a yield curve that consists of bonds that are selling at par.

Zero Coupon Yield Curve

The yield curve formed by zero-coupon bonds, also known as spot yield curve in English. It is common practice in the market to derive this curve from the par yield curve according to the theory, and it is often used to calculate the discount factor. A parity yield curve is a yield curve that consists of bonds that are selling at par.

The yield curve formed by zero-coupon bonds is also known as the term structure of interest rates.