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1. Which of the following is not correct about TIPS? a. If deflation occurs over the life of the TIPS, then the investor receives the

1. Which of the following is not correct about TIPS?

a. If deflation occurs over the life of the TIPS, then the investor receives the greater of the principal amount or the par value.

b.The interest paid on TIPS changes based on inflation and the changing principal amount of the TIPS.

c.TIPS have maturities that do not exceed 20 years.

d.TIPS can be purchased on a competitive or noncompetitive basis.

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