Last Year,you Purchased a "TIPS" at Par

question 77

Multiple Choice

Last year,you purchased a "TIPS" at par.Since that time,both market interest rates and the inflation rate have increased by 0.25 percent.Your bond has most likely done which one of the following since last year?

• A)decreased in value due to the change in inflation rates
• B)experienced an increase in its bond rating
• C)maintained a fixed real rate of return
• D)increased in value in response to the change in market rates
• E)increased in value due to a decrease in time to maturity

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Definitions:

Quantitative Data

Numerical information that represents quantities or amounts, allowing for measurement and statistical analysis.

Graphical Presentation

A visual representation of data or information, such as charts, graphs, or maps, designed to communicate complex ideas clearly and effectively.

Quantitative Data

Data that can be quantified and are typically expressed as numerical values, which can be used for statistical analysis.

Relative Frequency Distribution

A way to show how often each value in a dataset occurs relative to the total number of values.