Printer Friendly
The Free Dictionary
1,087,158,090 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

inflation-indexed security

    0.07 sec.
Inflation-Indexed Security
A security that guarantees a return higher than the rate of inflation if it is held to maturity.

Notes:
In other words, an inflation-indexed security guarantees a real return. These usually come in the form of a bond or note.

inflation-indexed security
A security with a rate of return linked to some specified measure of inflation. For example, Series I U.S. savings bonds pay holders a specified fixed rate adjusted for changes in the consumer price index.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
Example 1: A $100,000 face value inflation-indexed security issued at par in January 2001 bears 5% interest and matures in four years.
Inflation-indexed debt instruments by Vines, Timothy W. / The Tax Adviser
Because the payments automatically adjust to compensate for inflation, the yield on an inflation-indexed security reflects the real rate of return that would be realized over the maturity of the security.
The Treasury Securities Market: Overview and Recent Developments by Archambeault, Emilie / Federal Reserve Bulletin
More results
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.. Terms of Use.