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nazim also recently bought bonds with a clause stating that interest will be paid based on the inflation rate. when the inflation rate increases, the interest on the bonds will also increase. nazim has invested in .

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shristiparmar1221

Nazim has made a purchasing power bond / indexed bond investment.

What is Purchasing Power bond?

Purchasing-power bonds, which alter their terms to maintain the contract's purchasing power rather than paying a fixed-dollar value, are a method for this adjustment.

Purchasing Power Bonds are subject to inflation risk, often known as purchasing power risk. It alludes to the possibility that rising prices will make an investor's assets and income less valuable as purchasing power. Interest rate risk is the chance that investment, particularly a bond, would lose value due to an increase in interest rates.

Therefore, Nazim made an indexed bond or purchasing power bond investment.

Learn more about Purchasing power bond investments, from:

brainly.com/question/14292801

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