Q363
In US treasury, inflation indexed bond is classified as
A.
treasury inflation protection securities
AnswerB.
treasury inflation protection notes
C.
treasury inflation commercial papers
D.
inflation coupon protection securities
Answer: Option A
Solution
Answer: Option A
Solution:
In US treasury, inflation indexed bond is classified as treasury inflation protection securities. Treasury Inflation-Protected Securities (TIPS) are a form of U.S. Treasury bond designed to help investors protect against inflation. These bonds are indexed to inflation, have U.S. government backing, and pay investors a fixed interest rate as the bond's par value adjusts with the inflation rate.