Indexed bonds produce all of the following benefits except:
A) less inflation risk.
B) more financial innovation.
C) better government incentives.
D) lower rates of inflation.

Question

Quizplus · Accepted Answer

Indexed bonds are designed to protect investors from inflation risk by adjusting the principal and interest payments based on inflation rates, promoting financial innovation, and potentially influencing government fiscal policy. However, they do not directly result in lower rates of inflation; inflation rates are influenced by broader economic policies and conditions.

Indexed Bonds Produce All of the Following Benefits Except