Index bond
Index bond (alternatively known as purchasing power bond) is a bond that has interest payments based on an inflation index so as to protect the holder from inflation.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Index bond (purchasing power bond). A bond that has interest payments based on an inflation index so as to protect the holder from inflation.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
