2590. Indexed bonds that are issued by linking payments to inflation are classified as

treasury inflation protected securities
premium protected securities
risk protected securities
liquidity protected securities
✅ The correct answer is A.
Indexed bonds that are issued by linking payments to inflation are classified as treasury inflation protected 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.

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