Inflation must always be a consideration for bondholders because: It improves bondholder's future purchasing power from the bond-related cash flows. It reduces the bondholder's future purchasing power from the bond-related cash flows. Higher inflation will lead to higher bond prices, so a bondholder stands to see the debt instruments they hold appreciate in value if inflation rates increase. O It reduces a bondholder's true tax liability.

Inflation must always be a consideration for bondholders because: It improvespondholder's future purchasing power from the bond-related cash flows. It reduces the bondholder's future purchasing power from the bond-related cash flows. Higher inflation will lead to higher bond prices, so a bondholder stands to see the debt instruments they hold appreciate in value if inflation rates increase. It reduces a bondholder's true tax liability