Treasury Inflation-Protected Securities TIPS
Definition of 'Treasury Inflation-Protected Securities TIPS'
When the value of the principal is adjusted the coupon value will change by multiplying it by the coupon rate. This protects the bond holder against inflation.
TIPS are currently offered in 5-year, 10-year and 30-year maturities. The United States Treasury replaced the 20-year maturity with the new 30-year maturity in February 2010.
Compare the following Treasury instruments:
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