Last year, you purchased a TIPS at par. Since that time, both market interest rates and the inflation rate have increased by .25 percent. Your bond has most likely done which one of the following since last year?
A) Decreased in value due to the change in inflation rates
B) Experienced an increase in its bond rating
C) Maintained a fixed real rate of return
D) Increased in value in response to the change in market rates
E) Increased in value due to a decrease in time to maturity
Correct Answer:
Verified
Q49: The difference between the price that a
Q50: Which one of the following is the
Q51: Bonds issued by the U.S. government:
A) are
Q52: A bond that has only one payment,
Q53: A zero coupon bond:
A) is sold at
Q55: Which one of the following risks would
Q56: The break-even tax rate between a taxable
Q57: Rosita paid a total of $1,189, including
Q58: Samantha owns a reverse convertible bond. At
Q59: Al is retired and his sole source
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents