Kruse, Susanne; Meitner, Matthias; Schroder, Michael - In: Applied Financial Economics 15 (2005) 16, pp. 1125-1133
This paper discusses the pricing of GDP-linked financial products. GDP-linked bonds for instance are bonds which pay a coupon tied to the changes of GDP (Gross Domestic Product): if economic growth is low, the coupon decreases while a strong economic rise leads to a higher coupon. Therefore...