Index-Linked Bond

Index-Linked Bond,

What is The Definition of Index-Linked Bond?

An index-linked bond is one in which interest payments to the principal are linked to a specific price index, usually the consumer price index (CPI). This feature protects investors from changes in the underlying index. Bond cash flow is adjusted to ensure that bondholders receive a well-known actual rate of return. Indexed bonds are also known as Canada Original Production Bonds, US Treasury Inflation Securities (TIPS) and UK Bonds.

  • Indexed bonds, also known as inflation-linked government bonds in the United States, pay interest on a basic index such as the Consumer Price Index (CPI).
  • The government issues index-linked bonds to mitigate the effects of inflation by paying the actual rate of return plus inflation.
  • These bonds are beneficial for investors as they are less volatile than regular bonds and reduce the risk associated with uncertainty.

Literal Meanings of Index-Linked Bond

Index:

Meanings of Index:
  1. Values ​​(prices, salaries, or other payments) are automatically linked to price index prices.

  2. (Machine or part of a machine) to perform a series of rotating or moving operations from one default position to another.

  3. An alphabetical list of names, articles, etc. usually refers to the place where they occur at the end of the book.

  4. An indication, mark or measure of something.

  5. Extender or other subscripts or superscripts were added to the set.

  6. Indicates the instrument that measures the scale, and so does the intensity.

Sentences of Index
  1. List these lists under regional headings

  2. Legislation linking wages to prices

  3. The pins are pulled and aligned to occupy adjacent distribution positions

  4. Clear cross references equipped with wide index

  5. There is evidence in the article that for any closed fold, the sum of the general vector field indexes is the topological agent, that is, the characteristic of the eller.

Synonyms of Index

guide, implication, sign, marker, mark, lead, hint, indication, finger, hand, needle, pointer, signal, indicator, symptom, suggestion, clue, intimation, token, evidence

Linked:

Meanings of Linked:
  1. Make, create, or suggest contacts with or between them.

  2. A relationship between two things or situations, especially when it affects each other.

  3. A ring or loop on a chain.

  4. Field lanterns and trailers to light the way through dark streets.

Sentences of Linked
  1. Rumors of her being linked to Judith

  2. Commission to study the relationship between pollution and deforestation

  3. Chain made of steel links

Synonyms of Linked

knot, connection, connective, linkage, joint, bracket, relatedness, draw a connection between, tie-up, relate, associate, wed, loop, association, connect, ring, connector, relationship, coupling, join, marry

Bond:

Meanings of Bond:
  1. Securely attach or attach to anything else, especially by a sticky substance, heat or pressure.

  2. Join or join through chemical bonds.

  3. Place (bricks) in an overlapping pattern to form a solid structure.

  4. (Taxable goods) Customs.

  5. Relationships between people or groups based on shared feelings, interests or experiences.

  6. The contact between two surfaces or objects, including by adhesive, heat or pressure

  7. According to the power of law.

  8. The pattern in which the bricks are placed to ensure the strength of the resulting structure.

Sentences of Bond
  1. Press the components to join the layers

  2. Neutral molecules attached to the central atom

  3. The fort is shaped like a drum, made of stone, made of horizontal layers of red bricks.

  4. Assets may need to be sold or consolidated to provide liquidity to pay this tax.

  5. There is a relationship of understanding between them

  6. There is no effective link between concrete and steel.

  7. Marriage as a legal bond may be obsolete, but I doubt it.

  8. Link in English

Synonyms of Bond

assurance, weld, gum, paste, secure, cement, affiliation, pledge, stick, vow, coalition, avowal, attach, fellowship, bind, join, word, oath, connect, fasten, affix, glue, alliance