Index Ratio
Inflation-linked bonds use a ratio comparing a reference inflation index level with the base index under instrument-specific lag and interpolation rules.
Market use
The ratio adjusts principal and/or coupon calculations depending on the bond.
What it means
Inflation-linked bonds use a ratio comparing a reference inflation index level with the base index under instrument-specific lag and interpolation rules.
Example
Do not use current headline inflation directly in place of the contractual index ratio.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.