Treasury inflation protection securities $($TIPS$)$ has the following features. Which one is not correct?

The periodic principal adjustments and coupon payment are treated as taxable income.

TIPS are very useful to policy makers because the expected inflation can be generated by subtracting the interest rate of TIPS from a nominal interest rate.

The coupon is calculated based on the inflation adjusted principal. So$,$ buying TIPS is appropriate investment for someone looking for significant current income.

TIPS may appear attractive to investors fearing inflation.

Interest rate on TIPS provides a direct measure of real interest rate because their interest and principal payments are adjusted for changes in the price level.