Bonds that guarantee a real rate of return are called

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Index-linked bonds are bonds that guarantee a real rate of return by adjusting the coupon payment and/or principal payment based on the inflation rate or a specified index. This means that the bond's return will keep pace with inflation, providing investors with protection against the eroding effects of inflation. Consols do not have a maturity date and pay interest indefinitely, but they do not guarantee a real rate of return. Zero-coupon bonds provide a fixed return at maturity, but they do not adjust for inflation. Guaranteed income contracts are insurance products that provide a fixed income stream in retirement, but they are not bonds. Fixed income securities refer to a broad category of securities that generate a fixed income, but they do not necessarily guarantee a real rate of return.

Bonds That Guarantee a Real Rate of Return Are Called