Wednesday, July 21, 2010

I Smoke 60 Cigarettes Per Day

"MEDIOBANCA indexed 2005-2015 European multiplier

Adesso facciamo un esempio di un bond la cui cedola legata all’inflazione is multiplied by a multiplier.
For example, the obligation "MEDIOBANCA indexed 2005-2015 European multiplier using this policy, in particular, the coupon is determined by the product of inflation in the euro and 1.44.
Assuming inflation at 1, 5% will get the coupon of 2.16%, if the 'inflation was 5%, the coupon would be 7.2% in case of deflation, the coupon would be nothing.
This type is suitable for those who expect runaway inflation.
The post does not constitute solicitation of public savings.

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