The interest earned on a ____ will equal the inflation rate plus a fixed assigned rate of return.

Question

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I-bonds are US savings bonds issued by the government that earn a fixed interest rate plus a rate of return that is adjusted for inflation. This means that the interest earned on I-bonds will keep up with inflation, making them a good option for long-term savings. Revenue bonds are a type of municipal bond that are issued to finance specific projects, while tax-exempt bonds offer tax advantages but may not offer a fixed interest rate. Treasury bills have a fixed interest rate but do not adjust for inflation.

The Interest Earned on a ____ Will Equal the Inflation