First, the standard risk premium theories do not seem to explain much of the actual movements in inflation-indexed bond
The Treasury Department's new inflation-indexed bond
will react to changes in interest rates in novel ways.
market, which, in August 2003, had a total outstanding dollar value of about $150 billion and represented approximately 6 percent of the U.
With an inflation-indexed bond
investment of $1,000, a 2% consumer price-index increase would boost the maturity value of your holding to $1,020.
12) Ten-year inflation-indexed bonds
are commonplace in some markets, for instance in the United States where they have been issued since the inception of its inflation-indexed bond
program in 1997.
Munson served as portfolio manager for the SDCERA Value and inflation-indexed bond
GMO Inflation Indexed Bond Fund provides exposure to the inflation-indexed bond
universe and may be an appropriate vehicle for investors who are concerned about inflation and wish to preserve purchasing power.
Harris said the family has grown by five bond funds and a balanced fund the past year, including the nation's first inflation-indexed bond
fund, the PIMCO Real Return Fund.
t], given by equation (10), is the price of an inflation-indexed bond
when utility is CRRA.
Yield = Real Yield + Risk Premium
This regulatory symmetry works well when the rules are applied to either a traditional or an inflation-indexed bond
subject to a discount (whether arising on original issue or in a subsequent trade).
Using a simple econometric model to proxy for expectations about current and future short-term rates, the authors succeed in replicating some of the observed changes in long-term inflation-indexed bond