A disadvantage of holding TIPS is A If inflation does not occur then the value of holding TIPS decreases   B Investors are paid less than their original principal upon maturity C Interest rate on TIPS is usually higher because of default risk D All of the above

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A disadvantage of holding TIPS is
  • A
    If inflation does not occur then the value of holding TIPS decreases  
  • B
    Investors are paid less than their original principal upon maturity
  • C
    Interest rate on TIPS is usually higher because of default risk
  • D
    All of the above
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