2007-01-07 02:37:28 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
Check your set books / classroom notes ...
if you never bothered to attend class, try doing your own research = there are a lot of sites aimed at the novice investor out there (one good place to start is :- http://www.fool.co.uk/index.htm )
(sometimes I think this web site should be renamed 'Yahoo Homework Answers' ...)
2007-01-09 18:48:38 · answer #1 · answered by Steve B 7 · 0⤊ 1⤋
Break Even Inflation
English translation: the difference between a long-term bond yield and a real yield available on an index-linked bond of the same maturity.
The conventional definition of the break-even inflation thus refers to the average inflation rate that would have to take place over the life of the bonds such that the non-zero indexed bond would generate the same nominal return to maturity as the conventional bond. Only then does the `break-even' happen.
2007-01-07 02:45:02 · answer #2 · answered by littlemomma 4 · 0⤊ 0⤋