Which of the following is NOT an example of an indexed bond?
A)Commodity bond
B)Real return bond
C)Income bond
D)Callable bond

Question

Quizplus · Accepted Answer

Indexed bonds are bonds whose principal or interest payments are linked to an index, such as inflation or commodity prices. Commodity bonds (A) and real return bonds (B) are examples of indexed bonds, as they are linked to a commodity index and inflation index, respectively. Income bonds (C) are also indexed bonds, as they have variable interest rates based on the issuer's earnings. Callable bonds (D) are not indexed bonds, as they have a fixed principal and interest rate regardless of any index.

Which of the Following Is NOT an Example of an Indexed