The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned-a fixed rate and an inflation rate that changes twice a year?

Question

Quizplus · Accepted Answer

Series I bonds have a fixed rate of interest that is determined at the time of purchase, but also have an inflation component that is adjusted twice a year based on the Consumer Price Index (CPI). These bonds are purchased at face value and are considered low-risk investments. Series E and Series EE are no longer issued and have been replaced by Series I and Series EE bonds. Series HH and Series Q are not types of bonds.

The Text Discusses Several Types of Bonds