Question

Consider the following statements related to indexed bonds:

1. Bond’s return is attached to a particular index.

2. Indexed bonds are not available in India.

Which of the above is/are correct?

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is A 1 only

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> An indexed bond is a bond in which payment of interest income on the principal is attached to a specific price index like inflation. India has launched inflation indexed bonds in the past.