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Principal amount in Treasury Inflation Protection Securities is considered as
Answer & Solution
Correct Answer:
Option
B
Principal amount in Treasury Inflation Protection Securities is considered as inflation adjusted principal. 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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