Indexed bonds are raised as a puzzle because a government that borrows is said to gain from:

1. Inflation redistributes between borrowers and lenders. 2. A borrower repays in money that has lost value when prices rise. 3. The question asked is why a government would offer indexed bonds. 4. It is asked given that a government gains from unexpected inflation when it borrows. 5. Indexing the bond removes that gain. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 8 'Inflation'_