Which of the following statements is not true about Treasury Inflation-Protected Securities (TIPS) ?
A) They are currently sold with 5-, 10-, and 30-year maturities.
B) The amount of principal increases with inflation and decreases with deflation.
C) They pay interest twice a year, at a fixed rate.
D) They can be held until maturity or sold before maturity.
E) Interest income and growth in principal are exempt from federal income tax.
Correct Answer:
Verified
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