Which of the following would be most appropriate for an investor who is worried about the affect of inflation on their future purchasing power.

Question

Quizplus · Accepted Answer

Real Return Bonds are designed to protect investors from inflation by adjusting the principal amount and interest payments according to changes in the consumer price index. This ensures that investors maintain their purchasing power over time. Treasury Notes and Treasury Bonds offer fixed interest rates that do not adjust for inflation. Canada Savings Bonds and Canada Premium Bonds also do not offer inflation protection.

Which of the Following Would Be Most Appropriate for an Investor