Inflation-indexed Treasury securities are commonly called ________.

Question

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Inflation-indexed Treasury securities are commonly called TIPS, which stands for Treasury Inflation-Protected Securities. Choice A (PIKs) refers to a type of bond that allows the borrower to pay interest in the form of additional shares or securities instead of cash, and choice B (CARs) refers to a type of mortgage security. Choice D (STRIPS) refers to a type of bond that has been stripped of its interest payments and sold as separate securities.

Inflation-Indexed Treasury Securities Are Commonly Called ________