i am aware that if inflation goes -ve then so does the gilt but i still can't figure out exactly what a 3.06% GRY really means. Is it a real rate of 0.06% if inflation is 3%?
Hi
I'm a newbie and can't find a guide to index linked gilts anywhere on the net. I am trying to understand the yields.
For instance, at present the Gross Redemption Yield on UK 2.5 % 2013 is around 3.06%. My understanding is that the assumed rate of UK inflation is 3%.
So does this mean...