In 1997, the U.S. Treasury issued inflation-indexed bonds, known as Treasury Inflation Protection Securities (TIPS) . Reasons for doing so include:
A) The Treasury expected a protracted period of high inflation
B) To save the Treasury money
C) So that investors could separate inflation risk exposure from interest-rate risk exposure
D) Choices A and B only
E) None of the above
Correct Answer:
Verified
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