Question: Treasury Inflation-Protected Securities (TIPS) a) pay a fixed interest rate for life. b) pay a variable interest rate that is indexed to inflation, but maintain
Treasury Inflation-Protected Securities (TIPS)
a) pay a fixed interest rate for life.
b) pay a variable interest rate that is indexed to inflation, but maintain a constant principal.
c) provide a constant stream of income in real (inflation-adjusted) dollars.
d) have their principal adjusted in proportion to the Consumer Price Index.
e) provide a constant stream of income in real (inflation-adjusted) dollars and have their principal adjusted in proportion to the Consumer Price Index.
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