Treasury Inflation-Protected Securities are inflation-adjusted bonds issued by the U. S. Treasury. The principal is periodically adjusted for inflation, and the semi-annual fixed interest is paid on the adjusted principal. You pay tax annually on the interest payment. A drawback is that you also pay tax annually on the adjustment to the principal even though you don't receive the adjustment until you cash the bond.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). TIPS. Retrieved September 27, 2026, from http://smartdefine.org/tips/definitions/1165259 |
| Chicago | Barry Goldsmith. 2010. "TIPS" http://smartdefine.org/tips/definitions/1165259 (accessed September 27, 2026). |
| Harvard | Barry Goldsmith 2010, TIPS, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/tips/definitions/1165259>. |
| MLA | Barry Goldsmith. "TIPS" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/tips/definitions/1165259> |