S
SYABC
Member
I have some questions regarding bond indices:
1) Chapter 14 pg 24, Why is price index subdivided by term only and yield index subdivided by term and coupon?
I have looked at the FTSE UK Actuaries Gilt Indices but I can only see the yield index subdivided by term not coupon?
2) In the real yield index why are there different real yield for different assumed inflation 0% and 5%? I though real yield will not be affected by inflation?
Thank you very much.
1) Chapter 14 pg 24, Why is price index subdivided by term only and yield index subdivided by term and coupon?
I have looked at the FTSE UK Actuaries Gilt Indices but I can only see the yield index subdivided by term not coupon?
2) In the real yield index why are there different real yield for different assumed inflation 0% and 5%? I though real yield will not be affected by inflation?
Thank you very much.