Treasury Inflation Protected Securities (TIPS)
A) pay interest semiannually that equals a real rate of return specified by the U.S. Treasury, plus principal at maturity that is adjusted annually to reflect inflation's impact on purchasing power.
B) are a useful short-term investment if interest rates should rise quickly because of rapid increases in inflation.
C) increase the coupon rate of the security to adjust for changes in inflation.
D) a and b are true

Question

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The Answer of Treasury Inflation Protected Securities (TIPS)
A) pay interest semiannually that equals a real rate of return specified by the U.S. Treasury, plus principal at maturity that is adjusted annually to reflect inflation's impact on purchasing power.
B) are a useful short-term investment if interest rates should rise quickly because of rapid increases in inflation.
C) increase the coupon rate of the security to adjust for changes in inflation.
D) a and b are true