## Inflation Adjusted Rate Swap

The

**is a financial contract where, at the end of each accrual period, one party - the inflation receiver - pays a non-inflation linked coupon, for example libor + spread and receives a payment**

*Inflation Adjusted Rate Swap***, based on a rate that is linked to a specific inflation index, from the other party - the inflation payer.**

*Inf*It corresponds to the Deriscope Type Inflation Swap with the setting Swap Type = Adjusted Rate

Formally:

*Inf = NQ(t)rΔt*where

**is the swap notional,**

*N***is a constant rate,**

*r***is the length of the accrual period expressed in number of years and**

*Δt***is a number quoted at time**

*Q(t) = I(t-lag)/I(t₀)***as described in Inflation Adjusted Cash Flow**

*t*In particular,

**is some fixed date referred as the base date, but all that is needed to be specified is the corresponding index base value**

*t₀***through the key Base Value**

*I(t₀)*