The expected inflation rate over the next ten years implied by the inflation-indexed bonds
One can also look at tax-free bonds, non-convertible debentures, or NCDs, and inflation-indexed bonds
The 10-year inflation-indexed bonds
launched earlier this year, linked to the Wholesale Price Index could not attract much interest from investors.
Although the popular press often labels inflation-indexed bonds
as "exotic securities," nothing could be farther from reality.
The finance minister also made several promises: A pilot programme to promote micro-nutrients, a National Livestock Mission, inflation-indexed bonds
, a new corporate tax avoidance tax from 2016, a direct tax code and a new bill for a pan-India goods and services tax this session.
Plans to issue inflation-indexed bonds
* Proposes capital allowance of 15 pct to companies on investments of more than 1 billion rupees
The topics discussed include rediscovering the macroeconomic roots of financial stability policy, inflation-indexed bonds
and the expectations hypothesis, the economics of credit default swaps, equilibrium in the initial public offering market, and carry trade and momentum in currency markets.
Also, the rate-setting mechanism will be modified to ensure that the coupon rate of the inflation-indexed bonds
accurately reflects the market rate.
In the US, inflation-indexed bonds
issued by the Federal government are called TIPS (Treasury Inflation Protected Securities).
For endowments and foundations, it's inflation-indexed bonds
, and real assets like real estate.
Sure, some might argue that inflation-indexed bonds
offer a better and more direct inflation hedge than gold.
Treasury Inflation-Protection Securities are taxed under the general rules applicable to inflation-indexed bonds
(see Q 1108).