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Inflation-linked bond - Financial definition

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Translations:      FR  obligation indexée sur l'inflation (n.f.)     ES  bono indiciado con la inflación (n.m.) , bono vinculado a la inflación (n.m.)     DE  inflationsgeschützte Anleihe (n.f.) , inflationsindexierte Anleihe (n.f.) 
Synonym:  inflation-indexed bond

  Concise definition of the term inflation-linked bond

Bond whose cash flows are partially or entirely linked to an inflation index. This type of bond protects its holder against inflation risk and guarantees him a real interest rate as opposed to classic bonds which pay a nominal interest rate.

  Comprehensive definition of the term inflation-linked bond

In return for the protection against inflation, the nominal coupon rate for inflation-linked bonds is generally lower than that of a comparable bond that is not index-linked .

 Additional information related to this definition

Definitions of related terms

Bond  •  Coupon  •  Fixed-rate bond

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