Al is retired and his sole source of income is his bond portfolio. Although he has sufficient principal to live on, he only wants to spend the interest income and thus is concerned about the purchasing power of that income. Which one of the following bonds should best ease Al's concerns?
A) 6-year coupon bonds
B) 5-year TIPS
C) 20-year coupon bonds
D) 5-year municipal bonds
E) 7-year income bonds
Correct Answer:
Verified
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