Ducat Inflation Protected Bond

The , or DIP Bond was an economic instrument constructed and issued by the Serene Duchy of Aeldrum and Empire of Alusia after , as part of the ending of gold convertibility under the Treaty of Sevalne.
== Description ==
DIP Bonds were used to compensate state holders of gold for ending currency convertibility as specified in Article 4 of the Treaty of Sevalne. The bonds, once issued, were able to be resold, and yielded an annual interest rate of 2 percent plus the rate of inflation of the Aeldman Ducat (as calculated from the Emiir Group Consumer Price Index), payable semiannually.
=== Value ===
The DIP Bond's face value and all payments were denominated in Aeldman Ducats, with the economic value of gold for the purposes of exchange for DIP Bonds at the point of issue having been pegged at the gold-redemption value of the Aeldman Ducat. DIP Bonds were not redeemable until the beginning of (i.e. 5 full years after the end of currency convertibility), after which they were redeemable unilaterally by the issuing parties at their face value in ducats.
Category:Economics