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 20, 2026, from http://smartdefine.org/tips/definitions/1165259 |
| Chicago | Barry Goldsmith. 2010. "tips" http://smartdefine.org/tips/definitions/1165259 (accessed September 20, 2026). |
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