A nominal bond (also referred to as a conventional bond in Canada and the U.K.) is a bond which makes payments of a fixed amount, rather than a fixed real (inflation-adjusted) value. Most bonds are nominal, so the term is normally used only when contrasting nominal bonds with real-return bonds such as I Bonds or TIPS. For example, a popular bond investment strategy is 50% nominal bonds and 50% inflation-linked bonds.
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Wiki article link: [url=http://www.bogleheads.org/wiki/Nominal_bond]Nominal bond[/url]