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Edited 2d ago by
pkgdriver
@gumby said ↗I really don't understand TIPSInflation staying flat or rising A 5 yr TIPS will do better than a 5 yr Note. Your coupon rate is fixed on the TIPS but your principal goes up if the CPI/inflation rises. It will never be less than your original principal. I don’t understand either. Coupon rate will be applicable to the rise in principal also.
Rendered before/after
Before
I really don't understand TIPS
Inflation staying flat or rising A 5 yr TIPS will do better than a 5 yr Note. Your coupon rate is fixed on the TIPS but your principal goes up if the CPI/inflation rises. It will never be less than your original principal.
I don’t understand either.
After
I really don't understand TIPS
Inflation staying flat or rising A 5 yr TIPS will do better than a 5 yr Note. Your coupon rate is fixed on the TIPS but your principal goes up if the CPI/inflation rises. It will never be less than your original principal.
I don’t understand either. Coupon rate will be applicable to the rise in principal also.