In the world of finance, there exists a type of security known as Inflation-linked Bonds. These bonds are designed to protect investors from the harmful effects of inflation. How, you may ask? Well, these bonds are indexed to inflation, meaning that as the rate of inflation rises or falls, the principal and interest payments also adjust accordingly. This feature ensures that investors receive a fair return on their investment, even in the face of inflation. So, the next time you come across the term Inflation-linked Bonds, you'll know exactly what it means and how it benefits investors.
