# Estimating Zero Coupon Curve using only Fixed-Coupon bonds available

Today I have been struggling with something that someone here for sure has already encountered. I have a corporate issuer with a set of fixed coupon bonds (maturities between 1.5 to 20+ Years, luckily same coupon frequency), and I would like to estimate a Zero-Coupon Curve out of it.

However, this is not like the dummy exercises at university where you always have a zero coupon bond as a starting point, regular intervals between maturities (i.e. 0.5, 1, 1.5y, etc...) and you can build it easily. Is there any technique that can be used to achieve such a goal?

I have briefly read about a "Nelson-Siegel" approach, but I could not understand if such a model can accommodate coupon bonds or if I need zero coupons to estimate the coefficients. I'd be very grateful if anyone could help me. Many many thanks

• It is unclear to me if this question is about the case where two of the issuer's bonds have maturities quite close to each other, or the (simpler) case where the maturities are irregular. If the latter, then what you may be happy with is "bootstrapping" a piecewise constant curve. Commented Apr 16, 2023 at 19:10
• It may be better to separate the yields into RFR and the issuer spreads. Related: quant.stackexchange.com/questions/60693/… Commented Apr 16, 2023 at 20:01
• I’m voting to close this question because OP did not react on the given answer. Commented Aug 15, 2023 at 10:05