Treasury Inflation-Protected Securities (TIPS) pay a fixed interest rate for life.
a. pay a variable interest rate that is indexed to inflation but maintain a constant principal.
b. provide a constant stream of income in real (inflation-adjusted) dollars.
c. have their principal adjusted in proportion to the Consumer Price Index.
d. provide a constant stream of income in real (inflation-adjusted) dollars and have their principal adjusted in proportion to the Consumer Price Index.
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