Friday, October 29, 2010

Papyrus research provides insights into 'modern concerns' of ancient world

Papyrus research provides insights into 'modern concerns' of ancient world:
"Katherine Blouin from the University of Toronto publishes on a papyrus text regarding a Greek loan of money with interest in kind, the interest being paid in cabbages. Such in-kind interest protected the lender from currency inflation, which was rampant after 275 AD."

Bonds are pay interest in some asset other than money are still around but clearly not the norm. They are often called Payment in kind bonds where the payment can be in anything from oil, to an other bond, or gold.

Class: Explain why this would be a useful hedge.

No comments: