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How do you value a perpetual bond in an inflationary environment? A 3% return in perpetuity isn't very valuable when inflation > 3%.
by refurb 4y ago
How do you value a perpetual bond in an inflationary environment?
A 3% return in perpetuity isn't very valuable when inflation > 3%.
- nly 4y agoWell, you can have inflation linked bonds, but usually the issuer is in some way involved in setting determining the inflation index...