Explore BrainMass

Explore BrainMass


    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A. How is the interest payment on TIPS (Treasury Inflation-Protected Securities) calculated? What is the base measure?

    b. How are TIPS sold?

    c. Is the interest earned on TIPS taxable?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:01 pm ad1c9bdddf

    Solution Preview

    1. A security which is identical to a treasury bond except that principal and coupon payments are adjusted to eliminate the effects of inflation. In the US the inflation is measured by CPI (Consumer price index especially its urban household ...

    Solution Summary

    TIPS facets are assessed. The interest payments are determined.