Q374
Principal amount in Treasury Inflation Protection Securities is considered as
A.
tax adjusted principal
B.
inflation adjusted principal
AnswerC.
auction adjusted principal
D.
premium adjusted principal
Answer: Option B
Solution
Answer: Option B
Solution:
Principal amount in Treasury Inflation Protection Securities is considered as inflation adjusted principal. 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.