As inflation goes up, the principal value of TIPS ______ but interest payments _____ with the adjusted principal value of the security. A Increases; decreases B Rises; vary C Vary; decreases D Is steady; increases
As inflation goes up, the principal value of TIPS ______ but interest payments _____ with the adjusted principal value of the security. A Increases; decreases B Rises; vary C Vary; decreases D Is steady; increases
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
As inflation goes up, the principal value of TIPS ______ but interest payments _____ with the adjusted principal value of the security.
- A
Increases; decreases
- B
Rises; vary
- C
Vary; decreases
-
DIs steady; increases
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