Question
US Treasury issues TIPS ( Treasury Inflation-Protected Securities). Which of the following are true about this security? Group of answer choices It makes no periodic
US Treasury issues TIPS (Treasury Inflation-Protected Securities). Which of the following are true about this security?
Group of answer choices
It makes no periodic interest payments and makes one lump sum payment at maturity.
pay a variable interest rate that is indexed to inflation but maintain a constant principal.
provide a constant stream of income in real (inflation-adjusted) dollars and have their principal adjusted in proportion to the Consumer Price Index.
provide a constant stream of income in real (inflation-adjusted) dollars.
have their principal adjusted in proportion to the Consumer Price Index.
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