Question: (a) Please explain the difference between TIP and STRIPS. Under what economic situation would it be advantageous to purchase TIPS? Please provide an example of

(a) Please explain the difference between TIP and STRIPS. Under what economic situation would it be advantageous to purchase TIPS? Please provide an example of how TIPS bonds work.

(b) Why would a company issue convertible bonds? Why would an investor purchase convertible bonds? Why would an investor purchase bonds with a detachable warrant?

(c) What is the difference between competitive bidding and noncompetitive binding for treasury securities? Please provide an example of how the treasury auction process works.

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