Treasury Inflation-Protected Securities (TIPS)
A) pay a fixed interest rate for life.
B) pay a variable interest rate that is indexed to inflation.
C) provide a constant stream of income in real (inflation-adjusted) dollars.
D) have their principal adjusted in proportion to the Consumer Price Index.
E) provide a constant stream of income in real (inflation-adjusted) dollars and have their principal adjusted in proportion to the Consumer Price Index.
Correct Answer:
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