# Index-linked bond (bond with a stable value clause)

- Canonical URL: https://www.gerhardmerk.de/index-linked-bond-bond-with-a-stable-value-clause
- Post ID: 587341
- Modified: 2023-07-25T21:01:23+00:00
- Language: en

## Definition

Fixed-income security for which - the redemption amount and/or - the interest rates are contractually linked to an index; usually to the cost-of-living price index. The interest rate on an index-linked bond is normally lower than that on an ordinary bond. Thus, the investor pays for the value maintenance (value maintenance through linkage to an index) with a loss of interest. - See bond, index-linked, condor bond, issue, indexed, haven, safe, index fund, index tracking, distressed investments, swap, inflation-indexed, interest rate swap. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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