Aspirin(redirected from Measurin)
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Australian Stock Price Riskless Indexed Notes. Zero-coupon four-year bonds repayable at face value plus the percentage increase by which the Australian stock index of all ordinaries (common stocks) rises above a predefined level during the given period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Australian Stock Price Riskless Index Note. A debt security with no coupon with a return based on the return of a benchmark stock index. Unlike most zero-coupon bonds, an Aspirin is issued at face value; however, like others, it is redeemed at face value at maturity, which is four years after issue. The return (or the equivalent of a coupon) on an Aspirin is the fact that the bondholder receives a percentage of the return on the Australian all-ordinaries stock index provided it is over a certain amount. For example, if the limit is 5% and the return is 9% over the four years of the Aspirin, the bondholder receives a return of 4%. However, if the return on the all-ordinaries index falls below the limit, the bondholder receives no return. Aspirins allow investors to participate in the stock market without assuming all of the risk involved.
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