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YIELD CURVE

Par Yield

Finds the coupon rate that would make a bond price at par for a given zero curve.

Formula

100 = Σ C_par/(1+s_t)^t + 100/(1+s_n)^n

Variables: s_t spot rates; C_par par coupon

What it means

Finds the coupon rate that would make a bond price at par for a given zero curve.

Example

Solve the coupon that discounts to exactly 100 using the maturity-matched spot curve.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.