Explore BrainMass

Explore BrainMass

    Global Bond Market Indexation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Illustrate the need for, motivation, and concept of Indexation with an example to protect against Inflation in the Global Debt Markets.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:08 am ad1c9bdddf

    Solution Preview

    Step 1

    Indexation is used to adjust income payments by means of a price index so that the purchasing power is maintained after inflation. The need for Indexation arises from inflation on those that receive or make payments. The motivation is that when inflation is unavoidable the payments lose their purchasing power over time. The need to protect the real value of payments from the effect of ...

    Solution Summary

    Market Indexation is discussed step-by-step in this solution. The response also includes the sources used.