AgentPangolin
AgentPangolin
18.02.2020 • 
Business

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

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