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Index bond

A bond or other debt instrument whose redemption value or interest (or both) are adjusted based on changes in the Consumer Price Index (CPI) or another index that measures changes in the general price level.

(1) Other terms such as inflation-indexed security, inflation-linked note, real yield security and REALS are sometimes used to designate an inflation-linked bond. (2) Inflation-linked bonds include real return bonds in Canada and Treasury Inflation Indexed Securities in the U.S.

Synonyms and variations

  • Indexed bond 2.
  • Inflation derivative n.
  • Inflation-indexed bond
  • Inflation-indexed note
  • Inflation-indexed security
  • Inflation-linked bond
  • Inflation-linked note
  • Real yield security
  • REALS

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