TIPS are
A)bonds issued by the U.S. government that are indexed to inflation.
B)bonds issued by the U.S. government that earn interest that is free from federal taxation.
C)bonds issued by the U.S. government with initial maturities of 12 months or less.
D)zero-coupon bonds that represent coupon or principal payments stripped from a level-coupon bond.

Question

Quizplus · Accepted Answer

TIPS, or Treasury Inflation-Protected Securities, are bonds issued by the U.S. government that are indexed to inflation, meaning their principal value adjusts based on changes in the inflation rate, protecting investors from the negative effects of inflation.

TIPS Are