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in this video were going to talk about how to calculate the yield of maturity on a zero coupon bond so the yield of maturity is the rate of return that you would get if you purchased a bond at its current price and then held the bond to maturity so for example and now were course talking about zero coupon bonds in this example lets say that you bought a bond for ninety five thousand two hundred and thirty-eight dollars in the face value of the bond was a hundred thousand so because its a zero coupon bond that were talking about theres not going to be any periodic interest payments or anything like that its just a simple 1-year bond where you say okay today I pay ninety five thousand two thirty-eight in a year from now I get a hundred thousand returned to me so that difference between the hundred thousand and the ninety five thousand two thirty eight you could just think of that as the interest that youve that youve earned on that investment right so now we want to say okay we
