FRM Treasury inflationprotected securities TIPS
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In a TIPS, the coupon (real yield) is fixed. The inflation-adjusted principal varies. But it redeems at the greater of [inflation-adjusted principal, initial par value]. Also, TIPS are linked to CPI, which is a government statistic and not necessarily your experience of inflation/deflation. For more financial risk videos, visit our website! http://www.bionicturtle.com
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