TIPS are ______.
A) Treasury bonds that pay a variable rate of interest
B) U.K. bonds that protect investors from default risk
C) securities that trade on the Toronto stock index
D) Treasury bonds that protect investors from inflation

Question

Quizplus · Accepted Answer

TIPS, or Treasury Inflation-Protected Securities, are U.S. Treasury bonds designed to protect investors from inflation by adjusting the principal value based on changes in the Consumer Price Index.

TIPS Are ______