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

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

B. What is the advantage of issuing bonds with call provision? Why do investors purchase callable bonds when they have to forfeit (or sell back) these bonds to the issuing corporation in the future?

C. What is the difference between competitive bidding and noncompetitive bidding for Treasury Securities? Please provide an example of how the treasury auction process works. Be very precise.

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