If I want to sell zero coupon bond before maturity what will it be the price for it?

Question

Let's say I have 10yrs ZCB with a yield of 3% I hold the bond for one year what will be the price for my bond if I want to sell it ? thank you for the help.

Answer 1

The price is whatever the market will pay for it. If the value at maturity is $1000$, the original price $P$ should have had $P\cdot 1.03^{10}=1000$ or $P \approx 744.04$. After one year at $3\%$ it would nominally be worth $1.03$ times as much or $766.42$. If interest rates have risen in the meantime, say to $4\%$ the new value $V$ would have $V\cdot 1.04^9=1000$ for $V\approx 702.59$. If interest rates have fallen it will be worth more.