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Eagle Accounting currently supports ILBs by using the Swedish ILB model. This model has the following attributes:

  • Bonds use a trailing-three-month index to mark to market for inflation

  • Daily ILB index is calculated to a 6 decimal precision

  • Daily iteration of CPI is based on a 30e/360 day count; however, February 28th and February 29th are not treated as February 30 for daily CPI and Index Ratio calculation

  • Certain index linked bonds have the original principal investment is guaranteed, others do not

  • Interest accruals are based on the inflation-adjusted principal amount

  • Principal is adjusted daily; however, inflationary principal adjustments are only paid at maturity

Calculation of a Swedish Government Inflation Linked Bond Index Ratio

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