Question: Question 4 1 pts What is the difference between a 10-year treasury note and a 10- year TIPS? You need to select ALL correct answers:
Question 4 1 pts What is the difference between a 10-year treasury note and a 10- year TIPS? You need to select ALL correct answers: The treasury note pays fixed future coupons and principal. TIPS pay fixed future coupons and principal. If the inflation rate is positive, then the future payments of the TIPS are adjusted upwards. If the inflation rate is positive, the future payments of the TIPS are adjusted downwards. If the inflation rate is positive, the future payments of the treasury are adjusted upwards. These days, you already pay 20% tip at most restaurants which is more than enough, so there is no need to buy TIPS, just buy regular treasuries
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