TIPS: Treasury Inflation-Protected Securities »
Posted By populist 5 months, 2 weeks ago in Business & FinanceTreasury Inflation-Protected Securities (TIPS) are inflation-indexed bonds. Twice a year the U.S. Treasury adjusts the principal and the interest according to recent changes in the Consumer Price Index (CPI). In this way TIPS explicitly compensate their owners for whatever the rate of price inflation turns out to be. The table below shows how the Treasury adjusts principal and interest on TIPS. (To keep things simple, the example posits a single inflationary adjustment each year, rather than the twice-a-year calculation the Treasury actually uses.)
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populist
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calitennflo5 months, 2 weeks ago
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I rememeber a story about all the rich men giving gifts to the treasury...a treasury full of gold, riches beyong the dreams of anyone upon Earth...and all one woman had to offer as a gift to the same treasury was two mites...as she was a widow and shuned. God saw here gift as much much more than any man could ever give.
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So...know this...I am not the least bit impressed with this government or the treasury.
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