資源描述：
《inflation protected bonds》由會(huì)員上傳分享，免費(fèi)在線閱讀，更多相關(guān)內(nèi)容在工程資料-天天文庫。
1、7INFLATION-PROTECTEDBONDSAllbondsprotecttheinvestorfromin?ation.Thedifferencebetweenin?ation-protectedbondsandordinarybondsisthattheformerpro-videprotectionfromunexpectedin?ationwhereasthelatterdonot.Thischapteropenswithanexplanationofthe?rstsentenceabove
2、.Therestofthechapterexplainsthesecondsentence.RealversusNominalInterestRatesIn?ationmeansanoverallincreaseinthepricelevel.Particulargoodsandservicescanriseinpricebecausetheybecomescarcerormoreexpensivetoproducethanothers.Thisdoesnotmeanthattheirpriceshave
3、becomein?ated.Thatwouldbeconsideredarealpricechange,sincetheirpriceshaveincreasedrelativetoothergoodsandservices.Whenallgoodsandservicesincreaseinprice,that’sin?ation.1Supposeyou’reconsideringlending$100forayear.Youexpectin?ationtobe2%betweennowandtheendo
4、ftheyear.Whenthebor-rowerreturns$102toyou,you’rejustbreakingeven—whateveryoucouldhavepurchasedforyour$100nowisexpectedtocost$102attheendoftheyear.Soyou’llbeearningnothingonyourloan—you’renobetteroff.Putanotherway,you’rereallyearning0%.In?nancialterminolog
5、y,thestated,or“nominal,”interestrateonyourloanis2%,butthe“real”interestrateis0%percent.Inordertoactuallygetareturnonyourmoney,youneedanominalinterestrategreaterthan2%.8586?In?ation,YieldCurve,andCreditFactorsinBondsAnotherwaytosaythisisthattheborrowermust
6、payyou2%abovetherealinterestrate.Nowthinkaboutthemarketasawhole.Investorshavedifferentexpectationsregardingfuturein?ation—somemore,someless,than2%.Butthereisonlyoneinterestratestatedonabond.Wearrive,therefore,atthefollowingconclusion.Whateverrealreturninv
7、estorsdemandforaparticularmaturityloanorbond,thenominalinterestrateforthatmaturitymustequalthatreturnplusanextraamountforthein?ationrateexpectedbyinvestorsasagroupoverthatperiod.Inshort:Thenominalinterestrateforanymaturityequalstherealinterestrateplusthem
8、arket’sexpectedrateofin?ationforthatperiod.RealversusNominalRateofReturnSupposethat,basedonanexpectedin?ationrateof2%,theinterestrateonaone-yearloanis5%,fora“real”rateof3%.Oncetheyearisoverandtheloanrepaidwithintere
