Last year, you purchased a TIPS at par. Since that time, both market interest rates and the inflation rate have increased by one percent. Your bond has most likely done which one of the following since last year?

Multiple Choice

Decreased in value due to the change in inflation rates

Experienced an increase in its bond rating

Maintained a fixed real rate of return

Increased in value in response to the change in market rates

Increased in value due to a decrease in time to maturity