real yield security

real yield security definition - business

real yield security

A debt security on which the coupon rate is periodically reset to a level that reflects changes in the consumer price index plus a real yield spread. A real yield security transfers the risk of unexpected inflation from the creditor to the borrower. Series I savings bonds are an example of a real yield security.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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